llll

Republic the Philippines

NATIONAL POLICE COMMISSION
NATIONAL HEADQUARTERS PHILIPPINE NATIONAL POLICE
OFFICE OF THE CHIEF, PNP
Camp Crame, Quezon City

.JA
N 24 2n17
PNP MEMORANDUM CIRCULAR
No.20!7-007

GUIDELINES AND PROCEDURES ON THE GRANT OF MONETIZATION

OF LEAVE CREDITS FOR PNP PERSONNEL

1. REFERENCES:

a. Section 22 of Rule XVI of the CSC Omnibus Rules on Leave (Tab "A');
b. Executive Order No. 291 dated September 27, 2OO2 entitled:
'Monetizationof Leave Credits of Goyemment Officials and Employees"
(Tab'B");
c. CSC-DBM Joint Resolution No. 2-97 dated June 25 1997 (Tab'C");
d. DBM Budget Circular No. 2016-2 dated March 29, 2016 with subject:
"Computation and Funding of Terminal Leave Benefits and Monetization
of Leave Credits" (Tab "D");
e. CSC MC No. 02 s.2016 with subject: "Amendment on the Computation of
Constant Factor in the formula for Terminal Leave Credits and
Monetization of Leave Credits of the Omnibus Rules on Leave' (Tab "E');
and
f CSC MC No. 16 s. 2002 with subject: "Amendment to Section 23, Rule
XVI of the Omnibus Rules lmplementing Book V of the Administration
Code of 1987, otherwise known as Omnibus Rules on Leave" (Tab'F").

2. RATIONALE

The Civil Service Commission (CSC) and the Department of Budget and
Management (DBM) allow the monetization of leave credits of government employees
based on their existing rules and regulations. Hence, the PNP has deemed it necessary
to establish guidelines and procedures to ensure that this privilege is equally and
reasonably enjoyed, taking into consideration the availability of funds to provide for the
welfare of its members.

3. PURPOSE:

This Memorandum Circular (MC) provides the guidelines and procedures on

the grant of Monetization of Leave Credits (MLC) pursuant to CSC and DBM rules.The
MLC aims to provide the active members of the PNP a source of funds derived from
their eamed leave credits to augment their income and/or to provide for their personal or
families' needs without having to contract loans from financial institutions.

4. DEFINITION OF TERMS:

a. Monetization of Leave Credits (MLC) - refers to payment in advance,

under prescribed limits and subject to specified terms and conditions, the

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 JAN 24 2011

money value of leave credits of an employee upon his request without

actually going on leave. MLC is categorized as follows:

1) Regular Monetization refers to the monetization of a minimum of ten

-
(10) vacation leave (VL) credits, provided that at least five (5) days of
vacation leave credits are retained after the monetization per CSC MC
41 s. 1998;

2) Special Monetization - refers to the use of the accumulated VL and

sick leave (SL) credits provided, that at least ten (10) days of VL
credits and ten (10) days SL credits are retained after the
monetization-

b. Accumulated Leave Credits - refer to the total number of leave credits

accumulated by the PNP personnel from the time he/she entered the
service until his/her retirement or separation from the service-

c. Permanent Status - A permanent appointment shall be issued to a person

who meets all the requirements for the position to which he is being
appointed, including the appropriate eligibility prescribed, in accordance
with the provisions of law, rules and standards promulgated in pursuance
thereof.

d. Temporary Appointment - ln the absence of appropriate eligibility and it

becomes necessary an the public interest to fill a vacancy, a temporary
appointment shall be issued to a person who meets all the requirements
for the position to which he is being appointed except the appropriate civil
service eligibilily:. Provided, That such temporary appointment shall not
exceed twelve months, but the appointee may be replaced sooner if a
qualified civil service eligible becomes available.

e. Coterminous - an appointment issued to a person whose entrance and

continuity in the service is: (1) based on the trust and confidence of the
appointing authority or of the head of the organizational unit where he/she
is assigned; (2) limited by the duration of the project; or (3) co-existent
with the life span of the agency or office created.

f. Casual -an appointment issued to a person for services in an emergency

or during a peak work period to positions which do not have regular items
in the plantilla of personnel of the department or agency. A casual
appointment shall not exceed twelve (12) months.

g. Vacation leave - refers to leave of absence granted to PNP personnel for

personal reasons, the approval of which is contingent upon the necessities
of the service.

h. Sick leave - refers to leave of absence granted only on account of

sickness or disability on the part of the PNP personnel concerned or any
member of his immediate family.

i. Longevity Payllong Pay - refers to ten percent (10%) of the basic monthly
salaries for every five (5) years of service, wttich shall be reckoned from
the date of the personnel's original appointment in the AFP, or
appointment in the police, fire, jail or other allied services to the integration
of the PC and the INP: Provided, That the totality of such longevity pay
shall not exceed fifty percent (5006) of the basic pay.
j. lmmediate family - refers to the spouse, chaldren, parents, unmarried
brothers and sisters and any relative living under the same roof or

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 JAN 24 201t

dependent upon the PNP personnel for support.(Amended by CSC MC 6,

s. 1999)

5, GUIDELINES:

a. General Guidelines

1) All PNP personnel who are on full duty status whether permanent,
temporary, casual or coterminous appointment, who have accumulated
15 days of vacation leave credits shall be allowed to apply for MLC, as
follows:

a) Regular MLC - Monetize a minimum of 10 days and maximum of

30 days of vacation leave in a given year; andlor

b) Special MLC - Monetize 50o/o or more of accumulated total leave

credits.

2) Those who are due to rctire within one year are disqualified from
availing the MLC;

3) Computation - Pursuant to Section 40 of CSC MC No. 14, MLC shall

be computed as follows:

a) Uniformed Personnel and Non-Uniformed Personnel who are

authorized to receive long pay.

The one rank higher benefit shall not be applicable for MLC
computation.

Money value of
No. of days to Constant Factor
Cunent Monthly Base Pay + Long Pay x
be monetized
x
(0.0481927) = the monetized
leave

b) Non-Uniformed Personnel

Money value of
No. of days to be Constant Factor
Current Monthly Base Pay x x
(0.M81927)
the monetized
monetized
leave

4) Monetization of 5oo/o or more of the accumulated leave credits may

be allowed under any of the following reasons:

a) Health, medical, and hospital needs of the PNP personnel and the
immediate members of hislher family;
b) Financial aid and assistance brought about by force majeure events
such as calamities, typhoons, fire, earthquake, and accidents that
affect the life, limb, and property of the employee and his/her
immediate family;
c) Educational needs of the PNP personnel and the immediate
members of his/her family;
d) Payment of mortgages and loans which were entered into for the
benefit or which inured to the benefit of the employee and hivher
immediate family; and

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 JAN 24 2017

e) ln case6 of extreme financial needs of the PNP personnel or his/her

immediate family where the present sources of income are not
enough to fulfill basic needs such as food, shelter and clothing.

5) The application for MLC shall be processed on a fiEt-come-titEt-

serve basis in accordance with the procedures stated herein (See
Annex -'B");

6) The monetization, whether regular or special, may be availed only

once a year. However, a second MLC may be allowed in any of the
emergency cases enurnerated in paragraph 5.a.4 hereof subject to
availability of tunds;

7) At the start of calendar year, depending on prior yea/s savings under

the General Fund, Directorate for Comphollership (DC) shall allocate
and inform the PNP units of the total amount availaHe for payment of
MLC for the National Headquarters (NHQ) including the National
Support Units (NSUo) and the Police Regional Offices (PROs). The
pro-rata allocation shall be computed as follows:

Actual No. of Personnel per NHQ or PRO

ALLOCATION x Funds Available
Total Actual No. of Personnel Nationwide

8) The Direclorate for Personnel and Records Management (DPRM) shall

provide DC with the updated data on the number of personnel per
office/unit;

9) For PNP active personnel who had been paid of the applied MLC claim
which resulted in insuftcient leave balance, offsetting shall be done by
the Records Management Division (RMD), DPRM against the future
accrued leave credits;

10) For PNP personnel detrailed with other agencies, MLC application shall
be submitted to Personnel Holding and Accounting Unit (PHAU),
DPRM for processing; and

1 1) All requests for cancellation of MLC Order shall only be allowed within
three months after issuance of order, provided the leave credits have
not been monetized and claimed.

b. Procedures for Application and Payment of Regular/Special Monetization

of Leave Credits:

1) All PNP personnel qualited to avail the Reguhr MLC shall wbmit duly
accomplished MLC Application Form to their respec{ive Administrative
Officer;

2) For Special MLC, the following docurnents shall be submitted:

a) Duly accomplished MLC Application Form; and

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 JAN 24 2011

b.1) Clinical abstracUmedical procedures to be undertaken

in case of health, medical and hospital needs;

b.2) Barangay certification, in case of need for financial

assistance brought about by calamities, typhoons, fire,
etc;

b.3) School assessmenUofficial receipts in c€lse of

educational needs;

b.4) Demand letter or statement of account, in case of need

for payment of mortgages and loans; or

b.5) Any other pertinent supporting documents.

3) The Admin Officer/C, ARMD/C, RPHRDD shall process and submit

to RMD, DPRM the list of their approved MLC applications for
issuance of appropriate orders;

4) Upon receipt of the MLC Order from DPRM, the RPHRDD shall
prepare the Disbursement Voucher (DV) together with the required
documents and after checking the completeness and correctness of
requirements, shall submit the same to the Regional Comptrollership
Division (RCD), PRO for processing prior to submassion to BFO,
DPRM. For MLC claims processed by the Admin Officer/C, ARMD,
the DV shall be forwarded directly to BFO, DPRM; and

5) BFO, DPRM shall reprocess and program the claim submitted by

NHQ/NSUs and PROs prior transmittal to Fiscal Division,DC for
processing and subsequent payment by the Finance Service (FS).

c. Tasks

1) DPRM

a) lssue Breakdown of Leave Credits of active PNP Personnel

and provide authenticated copies upon request of the
concerned offices/units;
b) Verify Leave Credits of approved MLC applicants submitted
by PNP Offices/Units;
c) lssue MLC Order of active PNP Personnel and furnish same
to concemed Units/ffi ces;
d) Ensure that the number of leave credits used for purposes of
MLC shall be deducted to reflect the correcUadjusted leave
balance of the personnel who availed of the MLC;
e) Ensure that paid MLC are encoded/updated in PAIS
database for monitoring;
f) Notify the personnel and the unit of paid MLC claim which
resulted in insufficient leave balance, and the offsetting to be
done in the future for purposes of adjustment in the unit's
record of leave; and
g) Perform other tasks as directed.

Page 5 of 7
 JAN 2 4 2011

2) DC

a) lnform the officesi/units of the amount available for the payment of

monelization and their respective allocation;
b) Process and provide funds for the approved monetization of leave
credits of PNP active personnel subject to the availability of
funds; and
c) Perform other tasks as directed.

3) FS

a) Process the paymcnt of approved MLC through List of Due and

Demandable Accounts Payable - Advice to Debit Account (LDDAP-
ADA), or through the issuance of ciec*;
b) Furnish Admin Officers/C, ARMD/C, RPHRDD and RMD, DPRM
with authenticated copies of the paid DV and photocopy of the
LDDAP-ADA validated by LBP; and
c) Perform other tasks as directed.

4) Command Group, D-Stafi, P-Staff, lAS, NSUs and PROs:

a) Process MLC application and submit list of personnel with

approved application to RMD, DPRM for issuance of appropriate
orders; and
b) Perform other tasks as directed.

d. COORDINATING INSTRUCTIONS:

1) All Admin OffceE/C, ARMD/C, RPHRDD shall ensure widest

dissemination of this MC; and

2) All Admin fficer9C, ARMD/ C, RPHRDD shall ensure that the policies
and guidelines stated herein are strictly complied.

6. PENAL PROVISION:

Any violatlon hereof shall be dealt with in accordance with the provisions of
NAPOLCOM Memorandum Circular No. 2016-002.

7. RESCISSION:

All issuances inconsistent with this MC are hereby rescinded, repealed, or

modified accordingly.

8. EFFECTIVITY:

This MC shall take effect after 15 days from fling a copy thereof at the UP
Law Center in consonance with Section 3, Chapter 2, Book Vll of Executive Order 292
othenrise known as the "Revised Administrative Code of '1987,' as amended.

RON LA ROSA
Police Di
Chief, P

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mfiilfl[Irrr\'fiirf\ffrrrtttlttt
 JAN 2 4 2017

Annexes

A - MLC Form
B - Process Flow Chart

Distribution:

Command Group
D-Staff
IAS
P-Staff
NSUs
PROs
CPSM

Copy Fumished:

SPA to SILG

Page 7 of 7
Sanlple Form
'Annex
A to NHQ-PNP Memorandum Circular No- dated

Republic of the Philippines

'l NATIONAL POLICE COMMIsSION APPLICATION FOR MONETIZATION OF LEAVE CRED TS
PHILIPPINE NATIONAL POTICE lNote: This form should be accomptished in three (3) copies)
Camp cIame, Quezon Cty

OFFICEruNIT NAlllE (LasQ (First) (Middle)

DATE OF FILING POSITION SALARY MONTTILY SALARY

GRADE

DETAII.S OF APPLICATION
NATT]RF OF APPI,ICATION

I Regular MI-,,C 2. Speciaf MLC

Number ofdays: _ Number ofdays: _

REASON/S FOR SPECIAL MIrC SIJPPIORTING DOCUMENTS FOR SPECIAL MLC

Healthftnedical/hpital reeds Medical Certificater'Clinical Receds

Educatiuul purpor School Asseswt/Offi cial Recqds

Mofigagen Ens Demmd l,etter / StEtement of Account

Force majqrE ev€nts Saagay Cstitrc8le

Exftme lhecial needs Othcs @case qeci$):

For tle berEfit of Noa.: Aplicds #ll d.ch thc cigirl cofcr c .rlbearicded cor.3 of any of lt
\*to iYare lrip'porrhg doqrcds &Frdiqg on Olc rlrs.ir^ 3Fcitred.
irnmediate nembcr/s of my family'

'tiatde natb 4dt J.rib = ftl.d h,6,. rpl,, crtitb. ,acr*

un Mni.d brot .n crrd titteB od orq' eldte. Eti,g /t*, tt , d6
dcpnden apr, ,e PNP p,sr'9tf.n $ppn

SigndjI'e of Agpticon

E dr.dc., b]t Cca'dud wihin olbadfuid by: Rcctttttcttfud for qpowl by

(or PRO Aplbatun Only)

-Adll.in Ofrca/C, ARAD/C RPIIRDD CWRCD H cd Afice/A uhoricd Repr6er, tite

TO BE FTLLED OUT BY RMD, DPRM

CERTTT'ICATION OF LEAW CRBDITS

SI('K TOTAL
as of
(qa rcccipl of MIf adicdio)
PROCE,SSEDBY:

Ndrne dnd Sigrrolve/fhb

Chief, IJrve Section, RMI)

DETAII-S OF ACTION ON APPLICATION

Afoved for issumcc of MI,C Ords

Dis@oved due to _

Nol. a.d S*nCudchifi RMD Date

 tlowchan ol RrocessinU oI amlication and
amtoual oIMIG
Accomplished
AnnexB.l

Admin
Officer/9ARMD/ C,RPHRDD
upon recelpt ofthe MLC Order
thru email prepares the
disburcement voucher to be
certified by the Heads of Ofrices
and to be forsarded to
BFO, DPRM/RCD.
RCD processes, indexes
and endorse same to BFO,
DPRM,
Management Div, DC Budget Div, DC issues End
peforms pre-audit on the Notice of Cash Allocation
claim/s. (r{cA)
I
ll
I
Disburcement Div, FS
Accounting Div, DC, Chief, Accounting Division submits ADA & other
prepanes Obligation certifies the availability of pertinent documents to Land
Request and Status funds in Box B ofthe Bank of the Philippines(LBP).
(obRs). Voucher, and issues JEV

Oisburcement DiY, FS Authoriz€d signatories affix

Fiscal Div, DC pr€pares pr€pares Advice to Debit their signatures on the
letter request for DBM voucher, ADA, ACIC, and/or
BFO, DPRM reprocesses / and/or issues notice of
Account (ADA)/MDS Checks
other pertinent docs
validates the claim, and T and Advice of Checks
programs the fund, for fund allocation (NFA). Issued and Cancelled
submisCon to DC. (ACrC).
 Flowchan 0I Uocessinu 0I a[[lioation and
Staft anu0ual 0f mrc
i
I
Prepares MLC Emailsthe MLC orders
l

orderc )
to concerned Units ,l
Annex
PNP qualified active b.2
personnel submit duly
accomplished application
for MLC to Admin Officer
ARMD RPHRDD.
Applicant opts
to withdraw YES
his MtC
Application
_l L
RCD C.ertifies that the requested MLC RMD, DPRM !€turns
is within the allocated funds the application
available. documents to Admin
YES
Officer/ARMD/RPHRD
End
DPRM, BFO Ceftifies that the
requested MLC is within the allocated and copy furnished
funds available. BFO, DPRM / RCD

Approval of MLC
application

PROS prepare ehdors€ment of lbt and

approved MLC applicltion to DPRM
for issuance of trllc order.
rl
CG-DPS/tiSlh pr€p.re endoE ment of
l.3t lnd lpproved MLC applic.Uon RMD, DPRM verifies leave
toDPRM (Attn: C,Rl.lD) thru BFO tor credits balance
lrsuance of MLC order.
AN}$EX B:

Annex B.1. Application and approval of MLC:

1. PNP qualified active personnelsubmit duly accomplished

application for MLG to Admin Officer/ARMDTRPHRDD.

2. RCD certifies that the requested MLC is within the allocated

funds available. (For PROs only)

3. PROs prepare endorsement of list and approved MLC

application to RMD, DPRM for issuance of MLC order.

GG-DPs/NSUs - prepare endorsement of list and approved

MLC application to RMD, DPRM thru BFO, DPRM for issuance
of MLG order.

4. RMD, DPRM verifies leave credits balance.

5. Approval of MLC application

Admin Officer/ARMD/RPHRD and copy furnished BFO,

DPRM / RCD.
* >GO TO Step 6.

6. Applicant opts to withdraw his MLC (only on this stage can

the applicant withdraw or cancel application).
* ' -.,,)RMD, DPRM returns the application documents to
Admin Officer/ARMD/RPHRD and copy furnished BFO,
DPRM / RCD

" >GOTOStepT

7. RMD, DPRM Prepares MLC orders (endorsement to DPRM

Admin > Ex-O > then to Publication, then back to DPRM
Command Group for approval of MLC Order & TDPRM
signature)

8. Publication, RMD, DPRM emails the MLC orders to concerned

Units
) Then, GO TO ANNEX B.2. Processing and payment of
MLC
 Annex B.2 Processing and payment of MLC

1. Admin Officer/C, ARMD/C, RPHRDD,upon receipt of the MLG

Order thru email, prepares the disbursement voucher to be
certified by the Heads of Office and to be forwarded to BFO,
DPRM/RCD.

2. RCD processes, indexes and endorse same to BFO, DPRM.

(For PROs only)

3. BFO, DPRM reprocesses/revalidates the claim, and programs

the fund, for submission to DC.

Fisca! Division, DC prepares letter request for DBM, as

necessary, and/or issuesNotice of Fund Allocation (NFA).

5. Accounting Division, DC, prepares Obligation Request and

Status (ObRS).

6. Management Division, DC performs pre-audit on the claim/s.

7. Budget Division, DC issues Notice of Cash Allocation (NCA).

8. Chief, Accounting Division, DC certifies the availability of

funds in Box B of the voucher, and issues Journal Entry
Voucher (JEV).

9. Disbursement Division, FS prepares MDS Checks or Advice to

Debit Account (ADA), and Advice of Ghecks lssued and
Cancelled (ACIC).

10. Authorized signatories affix their signatures on the voucher,

ADA, ACIC, and/or other pertinent docs.

11. Disbursement Division, FS releases MDS check and/or

submits ADA and other pertinent documents to Land Bank of
the Philippines (LBP).