Important aspects of Leave Encashment:
1. Apart from Earned Leave Encashment up to 300 days payable on retirement, Rule 38A of CCS Leave Rules provides for Encashment of 60 days of salary in entire service while availing LTC by Central Government Employees.
2. One Spell for availing Leave Encashment should not exceed 10 days.
3. Leave Encashment is allowed only if the employee concerned is availing Leave Travel Concession (LTC)
4. The number of days for which Leave Encashment is claimed will be deducted from Earned Leave account
5. Number of days for which Leave Encashment is claimed and number of days for which Employee proceeds on LTC by availing Leave need not be same.
6. Similarly there is no linkage between nature of leave applied for availing LTC and Leave Encashment. Any leave including Casual leave which is allowed to be availed for the purpose of LTC can be utilised.
7. It is applicable both for All India LTC and Home Town LTC.
Leave Encashment – Developments:
Before the issue of Office Memorandum No: 14028/7/97-Estt.(Leave) dated 7.10.1997, there is no concept of claiming Leave Encashment while in service. Encashment of Earned Leave up to a maximum of 300 days was allowed only at the time or retirement. When a Government Servant quits service or resigns, the encashment was restricted to a maximum of 150 days.
To the benefit of Central Government Employees, OM dated 07.10.1997 issued by DOPT, paved the way for encashment of Leave while proceeding on LTC. It allowed Leave Encashment up to 10 days in one spell when employees opt to travel using LTC. The maximum of such leave encashment shall not exceed 60 days during the entire service. There was also a condition in the OM dated 07.10.1997 that encashment of leave for LTC and at the time of retirement combined together should not exceed the maximum limit of 300 days.
While Govt thought it was extending a benefit of leave encashment while service, it failed to get much reception from the employees on the very count that leave encashment while in service would reduce the retirement benefit. Later, by issue of Office Memorandum F.No: 31011/4/2008-Estt.(A) dated 23.09.2008 on implementation of Sixth Pay Commission recommendations, Govt had done away with the restriction of Leave Encashment beyond 300 days. Now, the leave encashed at the time of LTC will not be deducted from the maximum amount of earned leave encashable at the time of retirement.
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