How to compute monetization of leave credits?

Question/Topic:

A national government employee, SG 19 (P49,835.00) requested to monetize his 30 days leave credits.

The agency Accountant certified that there is available Personnel Services allotment to cover the request and the agency head approved the payment of the same.

How much will the employee receive for his monetized leave credits?

Answer

The formula to compute monetization of leave credits can be found in Budget Circular No. 2016-2 dated March 29, 2016 re: Computation and Funding of Terminal Leave Benefits and Monetization of Leave Credits (MLC).

The formula is:

MLC = S x D x CF

Where:

MLC = Monetized Leave Credits

S = Highest Monthly Salary Received

D = No. of Accumulated vacation and sick leave credits

CF = Constant Factor which is 0.0481927

Thus, to answer the question:

MLC = S x D x CF

MLC = P49,835 x 30 days x 0.0481927

MLC = P72,050.50

Guidelines on Monetization of Leave Credits

Please note that the Department of Budget and Management (DBM) may issue new guidelines as necessary relative to monetization of leave credits considering limitations in available resources.

For instance, in FY 2022, the DBM issued Circular Letter No. 2022-4 dated February 15, 2022 re: Processing of Requests for Monetization of Leave Credits for FY 2022 to guide agencies in processing requests for monetization of leave credits.

For FY 2024, the DBM issued Circular Letter No. 2024-1 dated January 31, 2024 re: Processing of Requests for Monetization of Leave Credits for FY 2024 to guide agencies in processing requests for monetization of leave credits.

The computation above is for illustration purposes only. Government agencies shall follow the guidelines issued by the DBM in processing requests for monetization of leave credits from their employees.