The funding for leave benefits shall be charged against the appropriations for Personnel Services of the barangay. The payment of leave benefits, being statutory obligation, shall be given priority in the barangay budget, subject to the 55% limitation on Personnel Services appropriation provided under Section 331 (b) of RA 7160. The money value of the annual leave benefits for a particular year shall be paid in full within the first quarter of the immediately succeeding fiscal year.
In relation to the above Joint Circular, the CSC in Memorandum Circular No. 12, s. 2007 dated July 24, 2007 issued clarification on the grant of said leave benefits. Item 4 of the Circular states that Barangay officials should file their claims/applications for commutation of their annual cumulated leave credits with the office of barangay treasurer by January 15 of the following year.