View source for Guidelines for Monetization of Leave Credits

[[Category:UPD Memo]]

27 June 2006

Ref. No. HBA-2006-17

TO: ALL DEANS, DIRECTORS AND HEADS OF UNITS

SUBJECT: Guidelines for Monetization of Leave Credits


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Attached is the system-wide guidelines for monetization of leave credits approved by the President upon the recommendation of the President's Advisory Council on 21 June 2006.

For your information and guidance.

HAYDE B. ARANDIA
<br />Officer-in-Charge, OVCA



'''ESTABLISHMENT OF SYSTEM-WIDE GUIDELINES FOR MONETIZATION OF LEAVE CREDITS'''

(Approved by the President upon the recommendation of the President's Advisory Council on 21 June 2006)


Since 2000, UP System and its Constituent Units have granted a series of monetization of leave credits ranging from 10 to 100 days to qualified staff. Although monetization of leave credits is governed by the rules and regulations of the Civil Service Commission and the Department of Budget and Management, there is still a need for the University to establish a set of system-wide guidelines to ensure that university officials and employees enjoy the privilege equally and reasonably.


While it is accepted that the leave credits being monetized are earned by the employees and it is their privilege to seek monetization, it must not be overlooked that unless properly regulated, this can erode the funds of the University. It is prudent, therefore, that while the University looks after the welfare of its employees, it should not forget its own needs.


For the period 2000 to 2005 alone, an average of P 59 M per year have been used for monetization, sourced primarily from the University's savings (see Table 1). The amount required for monetization increased by a factor of 2.3 in 2004 and by 2.5 in 2005 (using 2003 as reference). This apparent increase in funding requirement is attributable to calls made for monetization of 100 days or 50% of leave credits due to health reasons.


This proposal hopes to address the following issues (or variables):
::1. the maximum number of days to be monetized per call
::2. the frequency of the call for monetization
::3.prioritization in the case of limited budget


Two schemes are presented, each illustrating the implication of the above-mentioned variables. In any case, it is recommended that the remaining accumulated leave credits must not be less than what is being applied for.


'''Scheme A (Regular Cases)'''

The number of calls will depend on the availability of funds of the Constituent Universities, but not exceeding twice per year provided, that the number of days being monetized does not exceed twenty (20) days.


'''Scheme B (special Cases)'''
Depending on the availability of funds of the Constituent Universities, this may be availed of any time of the year but not to exceed a total of fifty (50) days in a given year. However, in extremely meritorious cases due to health reasons and when recommended by a committee of medical experts, the absolute maximum of 100 days or 50% of total leave credits (whichever is lower), may be granted.

Prioritization is necessary so as not to deplete the limited resources of the University. The prioritization criterion due to health, medical and hospitalization reasons is being fine-tuned to ensure the equitable grant of the privilege.


'''PRIORITIZATION'''

:1. Health, medical and hospitalization reasons
::Applicants shall be further ranked on the basis of the following:

::Priority 1   Applicant