Tool Name | Leave Encashment Calculator |
Beneficiaries | Central Govt Employees |
Published | July 2017 |
Updated | July 2021 |
Calculation Method | As per CCS Leave Rules |
Input Details | Pay Level, Basic Salary, DA, No of EL and HPL |
Output Details | Encashment for EL and HPL and Total |
Leave Encashment on Retirement Calculations | |
Select Pay Matrix Level | |
Select Basic Pay |
|
Select DA % | |
Enter EL (No of Days) | |
Enter HPL (No of Days) | |
The 7th Central Pay Commission has recommended in its report (Page No. 365) as follows…
Earned Leave (EL) or Leave on Average Pay (LAP)
Presently 30 days EL per annum is granted to Civilian employees and 60 days to Defence personnel. EL can be accumulated for 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 unlink encashment of leave from LTC. A novel concept of “gifting” has been put forward, wherein employees should be allowed to ‘gift’ a certain number of days of leave to one’s spouse or one’s colleague. “Vacation” staff like teachers, principals, etc. have demanded the restoration of 10 days EL, which was changed to 20 days Half Pay Leave by VI CPC.
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 “Vocational” staff can, however, be agreed to. Hence, it is recommended that “Vocational” staff be granted 10 days EL in place of 20 days Half Pay Leave. Other than this no other change is recommended.
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.
The demands lack merit. Elsewhere in the report, it has been recommended that 20 days HPL granted to “Vocational” staff be converted into 10 days EL. Hence, HPL will henceforth not be available to them. No change other than this is recommended.
- 4th Pay Commission: 240 days
- 5th Pay Commission: 300 days
- 6th Pay Commission: 300 days*
*Excludes 60 days EL encashment during LTC
10.1.44 The Commission has received representations seeking to raise the ceiling limit from 300 days to 450 days for purposes of Leave encashment.
Analysis and Recommendations in 7th CPC Report
10.1.45 The Commission notes that based on the recommendations of the VI CPC, serving employees are entitled to encashment of Earned Leave up to 60 days while in service. This is not to be deducted from the maximum number of Earned Leave of 300 days encashable at the time of retirement. The VI CPC, therefore, has further liberalized the regime of leave encashment.
10.1.46 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.
Whether encashment of leave is allowed after LTC is availed?
- Sanction of leave encashment should, as a practice, be done in advance, at the time of sanctioning the LTC. However, ex-post facto sanction of leave encashment on LTC may be considered by the sanctioning authority as an exception in deserving cases within the time limit prescribed for submission of claims for LTC.
What is the limit of leave encashment while availing LTC by Government servants, dependents, or spouse within the same block year?
- The Government servants governed by the CSS (Leave) Rules, 1972, and entitled to avail LTC may encash earned leave up to 10 days at the time of availing both types of LTCs., i.e., `Hometown’ and `Anywhere in India’. However, when the one and the same LTC is being availed of by the Government Servant and his family members separately in a block year, encashment of leave would be restricted to one occasion only.
Whether leave encashment should be revised on the retrospective revision of pay/D.A?
- In terms of 38-A of CCS(Leave) Rules, encashment of EL along with LTC is to be calculated on pay admissible on the date of availing LTC and DA admissible on that date. If pay or DA admissible has been revised with retrospective effect, going by the rule the Govt. servant would be entitled to encashment of Leave on the revised rates.
Whether earned leave encashment allowed by the State Governments, PSUs, Autonomous Bodies to Govt. servant prior to his joining the Central Govt. is to be taken into account while calculating ceiling of leave encashment on his superannuation and retirement from Central Govt.?
- Encashment of EL allowed by the State Governments, Public Sector Undertakings/Autonomous Bodies for services rendered therein need not be taken into account for calculating the ceiling of 300 days of Earned leave to be encashed as per CCS (Leave) Rules.
Whether cash equivalent of leave salary in case of permanent absorption in PSU/Autonomous Body is permissible?
- A Government servant who has been permitted to be absorbed in a Corporation/Company wholly or substantially owned or controlled by Central/State Government shall be suo-motu granted cash equivalent of leave salary of earned leave at his credit on the date of absorption subject to a maximum of 300 days (being calculated as per provisions of rule 39) {Rule 39-D) Permanent absorption under the rule shall mean such appointment for which the Government servant applied through proper channel and resigned from Government service for taking up of such appointment — {Note below rule 39-D — Notification No. 13026/3/2011-Estt.(L) dated 28-03-2012 )
Whether leave encashment can be sanctioned to a Govt. servant on his superannuation while under suspension?
- Leave encashment may be allowed in such cases. However, Rule 39(3) of CCS (Leave) Rules, 1972 allows withholding of leave encashment in the case of a Govt. servant who retires from service on attaining the age of superannuation while under suspension or while disciplinary or criminal proceedings are pending against him if in view of the authority there is a possibility of some money becoming recoverable from him on conclusion of the proceedings against him. On conclusion of the proceedings, he/she will become eligible to the amount so withheld after adjustment of Government dues, if any.
Whether leave encashment can be sanctioned to a Govt. servant on his dismissal/removal, from service?
- A government servant, who is dismissed/removed from service, ceases to have any claim to leave at his credit from the date of such dismissal, as per rule 9(1). Hence he is not entitled to any leave encashment.
Whether interest is payable on delayed payment of leave encashment dues?
- No. There is no provision in the CCS (Leave) Rules 1972 for payment of interest on leave encashment.
The amount of leave encashment will be calculated as follows:
Earned Leave Calculation Formula
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[(Basic Salary + DA) / 30] x No of days
Hal Pay Leave Calculation Formula
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[(Half Pay Leave Salary + DA) / 30] x No of days
7th CPC Recommendations on Encashment and Accumulation of Earned Leave – Click to read more
Earned leave settlement calculation Example: The Encashment Table of 300 days Earned Leave for the pay matrix level – 6 (4200 Grade Pay):
Earned Leave Encashment Table for 300 Days | ||||
7th CPC Pay Matrix Level -6 (GP-4200) | ||||
Index | Basic Salary | 17% DA | BP + DA | 300 EL |
1 | 35400 | 6018 | 41418 | 414180 |
2 | 36500 | 6205 | 42705 | 427050 |
3 | 37600 | 6392 | 43992 | 439920 |
4 | 38700 | 6579 | 45279 | 452790 |
5 | 39900 | 6783 | 46683 | 466830 |
6 | 41100 | 6987 | 48087 | 480870 |
7 | 42300 | 7191 | 49491 | 494910 |
8 | 43600 | 7412 | 51012 | 510120 |
9 | 44900 | 7633 | 52533 | 525330 |
10 | 46200 | 7854 | 54054 | 540540 |
11 | 47600 | 8092 | 55692 | 556920 |
12 | 49000 | 8330 | 57330 | 573300 |
13 | 50500 | 8585 | 59085 | 590850 |
14 | 52000 | 8840 | 60840 | 608400 |
15 | 53600 | 9112 | 62712 | 627120 |
16 | 55200 | 9384 | 64584 | 645840 |
17 | 56900 | 9673 | 66573 | 665730 |
18 | 58600 | 9962 | 68562 | 685620 |
19 | 60400 | 10268 | 70668 | 706680 |
20 | 62200 | 10574 | 72774 | 727740 |
21 | 64100 | 10897 | 74997 | 749970 |
22 | 66000 | 11220 | 77220 | 772200 |
23 | 68000 | 11560 | 79560 | 795600 |
24 | 70000 | 11900 | 81900 | 819000 |
25 | 72100 | 12257 | 84357 | 843570 |
26 | 74300 | 12631 | 86931 | 869310 |
27 | 76500 | 13005 | 89505 | 895050 |
28 | 78800 | 13396 | 92196 | 921960 |
29 | 81200 | 13804 | 95004 | 950040 |
30 | 83600 | 14212 | 97812 | 978120 |
31 | 86100 | 14637 | 100737 | 1007370 |
32 | 88700 | 15079 | 103779 | 1037790 |
33 | 91400 | 15538 | 106938 | 1069380 |
34 | 94100 | 15997 | 110097 | 1100970 |
35 | 96900 | 16473 | 113373 | 1133730 |
36 | 99800 | 16966 | 116766 | 1167660 |
37 | 102800 | 17476 | 120276 | 1202760 |
38 | 105900 | 18003 | 123903 | 1239030 |
39 | 109100 | 18547 | 127647 | 1276470 |
40 | 112400 | 19108 | 131508 | 1315080 |
Gratuity & Leave Encashment Calculation: Central Government employees retired during the period from January 2020 to June 2021 – Calculation of Gratuity and Cash payment in lieu of Leave – Finance Ministry OM dated 07.09.2021 PDF Download – Click Here
Earned Leave Encashment Calculator 2021 | Leave Encashment Calculation in India – Act, Formula, Tax Exemption, and Calculator: Leave encashment is one of the huge retirement benefits for employees working in the Government and Private sectors. While retirement, a lump sum amount will get on surrender of leave saved in his entire service. In Central Government Services, there will be another Leave Encashment opportunity while on Leave Travel Concession (LTC).
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Encashment of EL during Retirement: 300 Days (HPL shortfall of EL)
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Encashment of EL during LTC: 10 Days (60 Days Entire Career)
Freezing of DA Revoked: 28% from July 2021 (17% + 11% = 28%) Click to more news
Encashment Leave Rules and Orders:
Calculation Method with Formula for Encashment of Leave
7th CPC Leave Encashment Calculation
As per Rule 39 of the CCS (Leave) Rules, 1972, a Central Government servant is entitled to the cash equivalent of leave salary for both earned leave and half pay leave at his or her credit on the date of retirement, subject to a maximum of 300 days including the period of encashment allowed in the previous employment under the Central Government. In case a Government servant resigns or quit service, the maximum encashment of leave allowed is 150 days.
How to Calculate Leave Encashment
As per the encashment rules, a Central Govt employee can encash a total of 300 days Earned Leave (in case of shortage of 300 days in EL, take HPL for balance) at the time of retirement. The simple formula to calculate the lump sum amount of encashment…
Encashment for CG Employees
A simple online calculator for finding the maximum amount to avail complete cash benefit from this Special Cash Package Scheme on Leave Travel Concession. [Click to calculate]
LTC Cash Voucher Scheme Online Calculator 2020
A simple online calculator for finding the maximum amount to avail complete cash benefit from this Special Cash Package Scheme on Leave Travel Concession. [Click to calculate]
LTC Leave Encashment Calculator
On superannuation: Encashment of leave shall be subject to the condition that the number of days of both earned leave and half pay leave for which encashment has already been allowed under this
rule and the number of days of earned leave and half pay leave to be encashed on superannuation does not exceed 300 days;
On premature retirement: Cash equivalent of unutilized earned leave and half pay leave should be subject to the condition that the number of days of earned leave and half pay leave for which
encashment had already been allowed under this rule and the number of days of earned leave and half pay leave to be encashed on premature retirement shall not exceed 300 days. (DOPT Notification No. 11012/1/2009-Estt.(L) dated 01.12.2009)
Cash equivalent of leave salary in case of death in service: In case a Government servant dies while in service, the cash equivalent of the leave salary that the deceased employee would have got had he gone
on earned leave that would have been due and admissible to him but for the death on the date immediately following the death and in any case, not exceeding leave salary for 300 days (including the number of days for which encashment has been allowed along with Leave Travel Concession while in service), shall be paid to his family in the manner specified in Rule 39-C without any reduction on account of pension equivalent of death-cum-retirement gratuity.
Note: In addition to the cash equivalent of leave salary admissible under this rule, the family of the deceased Government servant shall also be entitled to payment of Dearness Allowance only as per orders
issued in this behalf separately. (MOF Notification No. 16(5)-E.IV(A)/74 dated 11.04.1975)
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What is leave encashment in govt services?
Encashment of Leave is the regular process in Government Services. Every Govt employee can surrender his saved leave for encashment. He/she will get the amount of salary according to the number of leave days.
How many days can save Earned Leave (EL)?
A Central Government employee can save a maximum of 300 days of Earned Leave (EL) can save in his account.
How to calculate Leave Encashment in Central Govt Services?
The amount of Leave Encashment will be calculated as follows…
Basic salary plus Dearness Allowance is divided by 30. The result is multiplied by the number of days EL (Maximum 300 days). If any shortfall in EL, then take the Half Pay Leave for calculation subject to not exceeding 300 days.
What is the formula for calculating encashment of earned leave?
The below calculation formula for calculating encashment of earned leave for Central Government employees. (Basic Salary + Dearness Allowance) / 30] x No of EL. [Click to view in detail]
What is the formula for calculating encashment of Half Pay Leave?
The below calculation formula for calculating encashment of Half Pay Leave for Central Government employees. [(Half Pay Leave Salary + Dearness Allowance) / 30] x No of HPL. [Click to view in detail]
Is Leave Encashment while on retirement taxable?
Leave salary received at the time of retirement (at the time of Leaving Service) is not taxable in any respect of amount. Leave salary received during the previous year (before retirement) is taxable.
Grant of accumulation and encashment of 300 days of earned leave for Defence and other Industrial employees – Dopt Order dated 7.11.2006
Also Check: Central Government Pay Matrix Table 2022 PDF
Which basic pay is taken to calculate earned leave calculations at time of retirment
Retiring month of basic pay & D.A. multiply by balance of E.L. (limited to maximum 300 days)