Encashment of Earned Leaves: Sixth Pay Commission Pay Hike

The latest news on from the Sixth Pay Commission. It is regarding the Encashment of Earned Leaves:
Below, we presnt the text as it appears on the Office Memorandum Ministry of Personnel, Public Grievances and Pensions Department of Personnel & Training. Though utmost care has been taken to replicate teh text as it is, but E&OE. Wikipedia on Sixth Pay Commission Ministry Site

Subject: Rocommendations of the Fifth Central Pay Commission - Decisions relating to Enhancement of the ceiling on accumulation and encashment of Earned Leave in respect of Central Government employees.


The undersigned is directed to say that constituent upon the decisions taken by Government on the recommendations of the Fifth Central Pay Commission relating to leave, the President is pleased to decide that h'1Q existing provisions of the Central Civil Services a.save) Rules, 1972.may be modified as follows in respect of civilian employees of the Central Govemment:-

(a:) The existing ceiling of 240 days on accumulation of earned leave provided in Rules 26 & 28 ibid shrill be ~nhcmcoo to 300 days:

(b) The existingceiling of 240 days for availing of the benefit of encashment of unutilised earned leave shall be increased to 300 days in respect of the following categorles:

(i) Retirement on attaining the age of super annuation [Rule 39(20]

(ii) cases where the service of a Government servant has been extended in the interest of public Service beyond the date of retirement on superannuation [Rule 39(4)];

(iii) Voluntarty/ pre-mature retirement [Rule39(5)]

(iv) where the services of a Government servant are terminated by notice or by payment of pay & allowances in lieu of notice, or otherwise in accordance with the terms and conditions of his appointrnent [Rule 39(6)(a)(i) ];

(v) in the case of tarrnination of re-empioyrnent after retirement [Rule 39(6) (a) (iil) ];

(vi) in the case of death of a Govemmont Servant while in service, to the Family the deceased [Rule 39A]

(vii) in the case of lec.1e preparatory to retirement [sub-rule (l) of Rule 38];

(viii) in the case oi transfer of a Government servant to an industrial establishment [Rule 6]; and

(ix) on absorption of a Government servant in the Central Public Sector Undertaking/autcmomcus body wholly or substantially owned or controlled by the Centrall State Government [Rule 39D];

(c) A Government servant who resigns or quits service shall be entitled to Cash equivalent in respect of earned leave at credit on the date of cessation service, to the extent of half of such leave at his credit, subject to a maximum of 150days mule 39(6)(a)(ii)).

2. The above orders will be effective from 1 July 1997.

3. The Fifth Pay Commission has also recommended that all employees may be permitted to encash 10 days earned leave at the time of availing of Leave TravelConcession, subject to the conditions that:-

(a) the total leave so encashed during the entire career does not exceed days in the aggregate;

(b) earned leave of atleast an equivalent duration is also availed simultaneously by the employee;

(c) a balance of at least 30 days of earned leave is still available to the of the employee after taking into account the period of encashmen t CIS
as leave; and

(d) the period of leave encashed shall be deducted from the quantum of leave that can be normally encashed by him at the time of superannuation,

This recommendation has also been accepted by the Government and, according encashment of earned leave may be cLllowed by the Ministries/Departments subject to prescribed conditions. 'The total encGshment of Earned Leave allowed to a Government servant alongwith LTC while in service and as per the provisions of the Central Service (Leave) Rules, 1972, should not exceed the maximum limit/ceiling of 300 or 150 days, as the case may be, .

5. The orders as per paragraphs 1 to 4 above shall also apply to Government servants serving in Vacation Departments.

6. Formal amendments to the Central Civil Services (Leave) Rules, 1972, are to be issued separately.

7. In so far as persons uerving in the Indkm Audit and Accounts Department concerned,these orders in consulation with the Comptroller and Auditor General of India.