Encashment of Leave Rules and Act for Central Government Employees
Encashment of Leave Formula
The cash equivalent for encashment of leave under sub-rule (1) shall be calculated as follows:
Cash equivalent = Pay admissible on the date of availing of the Leave Travel Concession plus
Dearness Allowance admissible on that date / 30 x Number of days EL subject to the maximum 10 days at one time
- No House Rent Allowance shall be included in the cash equivalent calculated under sub-rule (2);
- The period of earned leave encashed shall not be deducted from the quantum of leave that can normally be encashed by the Government servant under Rules 6,39,39-A, 39-B, 39-C and 39-D.
- If the Government servant fails to avail the Leave Travel Concession within the time prescribed under the Central Civil Services (Leave Travel Concession) Rules, 1988, then he shall be required to refund the entire amount of leave so encashed along with interest at the rate of two percent above the rate of interest allowed by the Government as applicable to Provident Fund balances and shall also be entitled for credit back of leave so debited for leave encashment.
The cash equivalent of leave salary under Clause (a) shall be calculated as follows and shall be payable in one lumpsum as a one-time settlement:
Cash equivalent for earned leave = Pay admissible on the date of retirement plus Dearness Allowance admissible on that date 30 x Number of days of unutilized earned leave at credit subject to the total of earned leave and half pay leave not exceeding 300 days
Cash payment in lieu of half pay leave component = Half pay leave salary admissible on the date of retirement plus Dearness Allowance admissible on that date 30 x Number of days of half pay leave at credit subject to the total of earned leave and half pay leave at credit not exceeding 300 days
Note: The overall limit for encashment of leave including both earned leave and half-pay leave shall not exceed 300 days.
To make up for the shortfall in earned leave, no commutation of half-pay leave shall be permissible.](DOPT Notification No. 11012/1/2009- Estt. (L), dated 01.12.2009)
CASH EQUIVALENT FOR EARNED LEAVE
- [(BASIC PAY + DEARNESS ALLOWANCE) / 30) X NUMBER OF DAYS OF UNUTILIZED EARNED LEAVE]
CASH PAYMENT IN LIEU OF HALF PAY LEAVE
- [(HALF PAY LEAVE SALARY + DEARNESS ALLOWANCE) / 30) X NUMBER OF DAYS OF UNUTILIZED HALF PAY LEAVE]
Government of India
Ministry of Personnel, P.G. and Pensions
(Department of Personnel and Training)
New Delhi, the 24th May 2011
Subject: Encashment of Leave to be granted to Government Servants on their appointment in Central Public Enterprises
The undersigned is directed to state that this Department has been receiving references from various Ministries/Departments seeking clarification regarding the entitlement to leave encashment on appointment of Government Servants in Central Public Enterprises.
2. As per DoPT OM No. 28016/5/85-Estt.(C) dated 31/1/1986, appointment of an officer in a Central Public Enterprise after acceptance of his technical resignation from Government is treated as immediate absorption. As per the terms and conditions contained in this OM, a Central Government Servant taking appointment in the Central Public Enterprises on Immediate Absorption basis was entitled to encashment of Earned Leave to his credit at the time of acceptance of his resignation from Government Service, subject to a limit of 180 days. Half Pay Leave stood forfeited. (The limit of Earned Leave which could be thus encashed was later raised to 300 days).
3. It is clarified that as per rule 39-D of the CCS (Leave) Rules, 1972, the calculation of leave encashment in case of permanent absorption in Public Sector Undertaking/Autonomous Body wholly or substantially owned or controlled by the Central/State Government will be as per rule 39(2)(b) which has been amended vide Notification GSR 170 datcd 1/12/2009 to read as under:-
The cash equivalent of leave salary under Clause (a) shall be calculated as follows and shall be payable in one lumpsum as a one – time settlement:-
|(i) Cash equivalent for earned leave|
|Pay admissible on the date of retirement plus Dearness Allowance admissible on that date||X||Number of days of unutilized earned leave at credit subject to the total of earned leave and Half Pay Leave at credit not exceeding 300 – days.|
|(ii) Cash payment in lieu of Half Pay Leave component|
|Half Pay Leave salary admissible on the date of retirement plus Dearness Allowance admissible on that date||X||Number of days of Half Pay Leave at credit subject to the total of Earned Leave and Half Pay Leave at credit not exceeding 300 days.|
No commutation of Half Pay Leave shall be permissible to make up the shortfall in Earned Leave.
4. All Ministries/Departments may note for further action accordingly.
5. Hindi version will follow.
Under Secretary to the Government of India
Also Check: Central Government Pay Matrix Table 2022 PDF