Civil Service Bureau awaits Finance Ministry study on leave and cash allowance amendments

The Civil Service Bureau has submitted a letter to the Ministry of Finance, requesting a study on the future financial impact of the amendments previously approved by the Civil Service Council in a previous meeting. The study aims to assess the expected budget reductions resulting from each amendment individually, as follows:

1. The financial impact and expected budget reduction resulting from limiting the cash allowance for employees upon termination of service from 180 days to a maximum of a two-year balance.
2. The financial impact and anticipated budget reduction resulting from the implementation of compulsory periodic leave of at least 15 days per year, alongside the proposed reduction of the leave balance from 5 years to 2 years.
3. The financial impact and expected budget reduction resulting from limiting the accumulation of periodic leave to a maximum of two years instead of five, with any excess leave being forfeited.
4. The financial impact and expected budget reduction resulting from canceling the cash allowance for accumulated periodic leave during service, considering that this allowance is now only disbursed once every 10 years.

The Court, in its letter dated the 16th of this month, emphasized that the financial study is a prerequisite for resubmitting the matter to the Civil Service Board. The study’s findings will guide the decision-making process, influencing the scope, nature, and extent of the amendments the Board will ultimately determine upon resubmission.

The Court further stated that the study serves as a prerequisite for drafting the decree on amendments to periodic leaves and cash allowances. It emphasized that this step is the final link in the process, carried out based on the decisions made by the Civil Service Council after reviewing the study’s findings as concluded by the Ministry of Finance.

The Civil Service Bureau’s letter stated: “Regarding the letter received from the Ministry of Finance, which references the letter from the General Secretariat of the Council of Ministers, it includes the decision of the Legal Affairs Committee to return the subject of amending periodic leaves and cash allowances to the Bureau. This requires coordination with both the Ministry of Finance and the Fatwa and Legislation Department to prepare a comprehensive project, taking into account the observations made by the Committee. The project will then be presented to the Ministry of Finance for a thorough study on the financial impact of the proposed amendments.”

The subject was presented to the Civil Service Council during its meeting No. (12) of 2024, held on October 24, 2024. The Council decided to approve the amendments as follows:

1. Reduction of the cash allowance due to the employee upon termination of service, from 180 days to a maximum equivalent to a two-year balance.
2. Implementation of compulsory periodic leave of at least 15 days per year, with any unused leave deducted from the employee’s balance.
3. Reducing the maximum retainable periodic leave balance from five years to two years, with any excess being forfeited.
4. Canceling the cash allowance for periodic leave balance during service, as stipulated by Decree No. 81 of 2022.

Source: Al Rai