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LEAVE ENCASHMENT AT THE TIME OF RETIREMENT
We have specifically chosen this topic as the sample text because sixth CPC has brought in a very significant change in this aspect.
W.e.f. 01-Sep-2008, the provisions are as follows:-
We have specifically chosen this topic as the sample text because sixth CPC has brought in a very significant change in this aspect.
W.e.f. 01-Sep-2008, the provisions are as follows:-
- Both Earned Leave (EL) and Half Pay Leave (HPL) will be considered for encashment of leave (encashment of HPL was notavailable earlier).
- Overall limit shall continue to be 300 days.
- EL encashment availed along with LTC during service will not be counted for this purpose (was counted earlier). That is leave encashment as a terminal benefit is available for up to 300 days even if an employee might have encashed some (admissible 60 ELs maximum) leave earlier along with LTC.
- First, encashment is allowed for EL. Then, shortfall if any (from 300 days), is allowed from HPL. In other words, if there is EL of 300 days or more, then encashment of HPL is not admissible.
- Commutation of HPL for this purpose is not admissible. That is only those many HPLs will be admissible as equal to the number of shortfall days without commutation even if there may be more HPLs at credit.
- Cash payment in lieu of EL = Leave salary admissible on the date of retirement plus DA thereon X No. of ELs at credit subject to maximum of 300 days
- Cash payment in lieu of HPL = Half Pay Leave salary admissible on the date of retirement plus DA thereon X No. of HPLs at credit (maximum up to shortfall).
| DOPT O.M. No. 14028/3/2008-Estt.(L), dated 25/09/2008 |
Illustrations -
- Mr. X retired from service on 30/06/2010. He had 300 days of EL and 435 days of HPL at his credit on that date. He had encashed 40 days of EL during his service along with LTC. Then, he will be paid cash equivalent of 300 days of EL. He will not be paid anything towards HPL.
- Mr. Y retired from service on 30/09/2010. He had 230 days of EL and 180 days of HPL at his credit on that date. He had encashed 60 days of EL during his service along with LTC. Then, he will be paid cash equivalent of 230 days of EL. He will also be paid cash equivalent of 70 (i.e 300 - 230) days of HPL.
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