LEAVE ENCASHMENT
An Encashment of leave Is one of the retirement benefits granted by the Government to their retiring employees. Under these scheme the benefit of encashment of unutilized leave on average pay, at the credit of employee at the time of retirement, shall be admissible subject to a maximum limit of 300 days w.e.f. 1.7.97 in
respect of following categories.
a) Retirement on attaining the age of superannuation
b) cases where the service of a Rly. servant has been extended, in the interest of public service beyond the date of
retirement on superannuation.
c) At the time of Voluntary / Pre- Retirement or declared unfit.
d) When a servant is terminated by Notice.
e) In case of termination of re-employment after
retirement..
f) In the case of death of Rly. Servant in service, to the family of the deceased;
g) In the case of leave preparatory to retirement.
h) In the case of transfer of Rly. Servant to an
industrial establishment; and on absorption of
a Rly. Servant in the Central Public Sector
Undertakings.
Railway Servant who resign or quit service also be entitled to cash equivalent in respect of
leave on average pay on the date of cessation of service to the extent of half of such leave at
his credit, subject to a maximum of 150 days.
[R.B's No.F (E) III/97/LE 1/8 of 10-11-97]
* Encashment of ceiling on encashment of LAP 300 days --
Clarification regarding calculation of LAP for encashment on termination of re-employment:
(1) Where Railway Servant has availed of encashment for 300 days at the time of
retirement, the cash equivalent in respect of leave on average pay (LAP) at his
credit on the date of termination office re-employment shall be limited to the quantum of LAP earned by him from 1.7.97
(2) Where a Rly. Servant has not availed of encashment for 240 days at the time of
retirement the cash equivalent in respect of leave on average pay (LAP) at his
credit on the date of termination of his re-employment shall be limited to the quantum of LAP earned by him from 1.7.97. onwards plus unavailed portion of the
LAP ( i.e. difference between 240 days and leave on average pay for which encashment has already been availed of).
In both above cases, the total quantum of leave on average pay already encashed at the
time of retirement and allowed to be encashed as above shall not exceed 300 days.
[No.F(E)III/97/LE1/8 dated 30.10.98.]
* Encashment Leave on half average pay (LHAP) on Superannuation .
W.e.f. 14 .7 .1982 the entire Leave on half average pay at the credit of Rly. Servant who retire on superannuation shall be allowed to be encashed subject to the condition that the
pension and pension equivalent of the other retirement benefits shall be deducted from the
amount payable as cash equivalent, as provided in Rule 550-B(i) of R..I.
* The encashment will be subject to the following conditions:
(a) The benefit will be admissible in respect of past cases on receipt of applications to that
effect from the pensioner concerned by the office.
(b) In respect of future retiree the amount of encashment of leave on Half-Average Pay
(HAP) will be calculated and paid together with Encashment of LAP.
(c) Calculation of cash equivalent in respect of LHAP at the credit shall be made mutatis
mutandis I in the manner given in Board's letter No. [ F(E)III / 82 / LE1 /2 dated11- 2-1983]. which is a under:-
(d) The amount so calculated shall be paid as one-time settlement.
[R.B's No..F(E)III/90/LE1/1 of dt. 20-05-1993 ]
Note: 1. There is no limit to the total number of LHAP that can be encashed on
superannuation.
2. If the Rly. Servant already availed of LAP encashment up to 240 days for which DA
would have been taken into account, he will not be entitled to DA on encashment of LHAP.
[ R.B' No .F(E) III - 90 /LE/1 of 21.10.93.]
* Special Leave:- Spl. Leave is granted to the Rly. Servant to cover there absence from duties on the following occasion :-
To attend work connected with running or administration of Railway men's Societies.
Under Family Welfare Program.
For participating sports.
Trade Union/Federation.
For Cultural activities like Drama and Musical
competition.
Scout work.
Voluntary blood donation.
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