7th CPC Recommendations on Encashment and Accumulation of Earned Leave

7th CPC Recommendations on Encashment and Accumulation of Earned Leave

“The recommendations in relation to pay of both the civilian and defence forces personnel will also lead to a significant increase in the pay drawn and therefore in the total amount of leave encashment available for an employee. Therefore raising the present ceiling of 300 days is not recommended by the Commission”.

Earned Leave : Presently 30 days EL per annum is granted to Civilian employees and 60 days to Defence personnel.

EL can be accumulated up to 300 days in addition to the number of days for which encashment has been allowed along with LTC.

Suggestions have been made to increase the accumulation to 450 days, allow encashment of 50 percent of the accumulated EL after 20 years of service and delink encashment of leave from LTC. A novel concept of “gifting” has been put forward, wherein employee should be allowed to ‘gift’ certain number of days of leave to one’s spouse or one’s colleague. “Vacational” staff like teachers, principals, etc. have demanded restoration of 10 days EL, which was changed to 20 days Half Pay Leave by VI CPC. Leave Encashment permitted at the time of retirement:

CPC	Earned Leave
IV CPC	240 days
V CPC	300 days
VI CPC	300 days
# # excludes 60 days EL encashment during LTC

Half Pay Leave (HPL) : Presently, government employees are entitled to 20 days of Half Pay Leave for each completed year of service, credited @10 days on the 1st of January and 1st of July every year. There are representations that encashment of HPL should be allowed at the time of superannuation.

Analysis and Recommendations : The demands lack merit. Elsewhere in the report it has been recommended that 20 days HPL granted to “Vacational” staff be converted into 10 days EL. Hence, HPL will henceforth not be available to them. No change other than this is recommended

Analysis and Recommendations : In many organizations, employees are encouraged to take leave on the premise that it revitalizes them and is beneficial for the organization in the long run. Such a system is not prevalent in the government sector in India, but substituting leave with cash is also not desirable. Hence, no change in encashment guidelines is recommended.

The Commission recognizes that Earned Leave is, as the name suggests, earned by an employee through the services rendered. Hence, it is personal to the employee and the concept of “gifting” cannot be considered.

The demand of “Vacational” staff can, however, be agreed to. Hence, it is recommended that “Vacational” staff be granted 10 days EL in place of 20 days Half Pay Leave. Other than this no other change is recommended.

More recommendations on other leave and holidays

Top 5 Recent Articles for Civilian Employees
1. Members of Empowered Committee for processing the Report of the 7th Pay Commission
2. 7th CPC Recommendations : Upgradation of GP 4200, 4600 and 4800 for the Employees of the Supreme Court
3. Lakhs of Railway Employees participated today in 3 days Protest Programme – AIRF
4. Demands of Grant of Appropriate Pay Scales To Employees and Officers of Accounts and Audit
5. Facilitation Fee levied by authorized travel agents on Air Tickets – Clarification orders issued by PCA(Fys)

Top 5 Recent Articles for Defence Personnel
1. Change of Definition of OROP in Various Correspondence of DESW Noticed
2. IESM LETTER TO RM ON OROP ANOMALIES
3. 7th CPC Report : Indian Army is one of the largest professional volunteer land forces in the world
4. Revision of pension for Pre-2006 Commissioned Officer, JCOs/ORs – PCDA Orders on 14.1.2016
5. One Rank One Pension – UFESM writes to Members of Parliament