Encashment of leaves

A Central Government servant may be paid cash equivalent of leave salary (Basic Pay, Grade Pay and DA) in respect of the period of the earned leave and Half Pay Leave at his credit at the time of retirement on superannuation subject to a maximum of 300 days and the payment should be made in lump sum. Earned leave and Half Pay Leave shall be considered for encashment of leave subject to overall limit of 300 days. Cash equivalent payable for Half Pay Leave shall be equal to leave salary as admissible for Half Pay Leave plus Dearness Allowance admissible on the leave salary without any reduction being made on account of pension and pension equivalent of other retirement benefits payable.  The authority competent to sanction leave is also competent to grant this lump sum cash for the above maximum period excluding the number of days, for which encashment was availed along with LTC.

ADMISSIBLE CONDITIONS :

1. On retirement after attaining the age of superannuation.

2. When the service is extended in public interest beyond the superannuation, after extension;

3. When an employee retires on superannuation while under suspension or while disciplinary or criminal proceedings are pending against him, the whole or part of cash equivalent of leave salary may be withheld to meet recoveries from him possibly arising on conclusion of the proceedings. On conclusion of the proceedings, payment may be released after adjustment of Government dues, if any;

4. On termination of service by notice / payment of Pay & Allowances in lieu of notice or otherwise in accordance with terms and conditions of his appointment;

5. On termination of service of officials re-employed after retirement. In this case the maximum will include the period for which encashment of leave was allowed at the time of previous retirement;

6. When an employee is invalided from service on medical grounds;

7. When an employee resigns or quits service on his own accord, the lump sum cash payment will be only to the extent of half of the earned leave at his credit subject to maximum of 150 days  on the date of cessation from service;

8. On premature retirement under FR56(j) or (l) of Rule 48 of CCS Pension Rules;

9. On voluntary retirement under FR56(k) or (m) of Rule 48 or 48A of CCS Pension Rules;

10. On compulsory retirement as a measure of penalty when no reduction in pension is ordered.

When an employee retires from the service, claim of encashment of EL at his credit is forwarded by the Unit/TF/CEs with all concerned documents duly countersigned by the OC of the unit, to the AAO/AO/ACDA for verification. After verification of the documents claim will be forwarded to PAO (GREF) for settlement.

AUDIT REQUIREMENTS :

1. Contingent bill prepared on IAFA-115 in duplicate duly suffixed with Re. 1 Revenue stamp.

2. Daily Part II order notifying the retirement casualty and EL at credit.

3. Sanction of the competent authority.

4. Entitlement certificate (Leave Credit Certificate) duly verified by the audit authorities.

5. No Demand Certificate.

6. Last Pay Certificate.

METHOD OF CALCULATION :

(A) The cash equivalent of Earned Leave at credit shall be calculated as follows –

Basic Pay + DA +Grade Pay admissible on the date of                 No. of unutilized earned leave

            Cessation of service                                                               at credit subject to maximum

     --------------------------------------------            x                                     of 300 days 

                        30                                                        

(B) The cash equivalent of Half Pay Leave component:-                        

                     Half pay leave salary admissible on the date      X      No of days of HPL subject to the condition that   

                     of retirement plus Dearness                                             HPL plus EL encashed does not exceed 300 days         

                      Allowance admissible on that date   

                      ------------------------------------

                                      30                                             

Encashment of Earned Leave along with LTC https://www.staffcorner.com/view.html?id=312001