DBM Limits Monetization of Leave Credits for Government Employees in 2024
The Department of Budget and Management (DBM) has issued a circular letter on January 31, 2024, outlining the guidelines on the processing of requests for the monetization of leave credits (MLC) for national government employees in fiscal year (FY) 2024.
According to the circular, MLC shall be processed by an agency, subject to the provisions of Civil Service Commission (CSC) Memorandum Circular (MC) Nos. 41, s. 1998 and 16, s. 2002, and other related prevailing rules and regulations of the CSC and the DBM.
However, the circular also states that payment of MLC may only be allowed under extraordinary circumstances, such as for medical emergencies and calamity-related concerns, and shall be charged against the departments/agencies’ available Personnel Services (PS) allotments from their built-in appropriations, after satisfying the requirements for the Retirement Gratuity/Terminal Leave (RG/TL) of retirees.
The circular explains that this is due to the substantial reduction of the appropriated amount for the Pension and Gratuity Fund (PGF) under the FY 2024 General Appropriations Act (GAA), Republic Act (RA) No. 11975, which authorizes payment for MLC for national government personnel. The circular emphasizes that the prioritization of the fund is necessary to ensure that payment of RG/TL benefits and pension are met/settled.
The circular letter is addressed to all heads of departments, agencies, bureaus, and offices of the national government, including state universities and colleges and constitutional offices, and all others concerned.
The DBM advises the concerned agencies to strictly comply with the guidelines and to exercise prudence and judiciousness in the utilization of their PS allotments. The DBM also reminds the agencies to submit the required reports and documents to facilitate the monitoring and evaluation of the MLC requests.
The circular letter is signed by DBM Secretary Wendel E. Avisado and is posted on the DBM website for public information.