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Date of retirement from service       X             to the total of EL and HPL not exceeding 300 days



For Half-Pay Leave

Half-pay leave salary admissible                              Number of days of half pays leave at credit subject

On the date of retirement plus Dearness      X    to the total of earned leave and HPL at credit not

Allowance admissible on the date                           exceeding 300 days


Note: (1) The overall limit for leave encashment (including both EL and HPL) shall not exceed 300 days.

(2) To make up the shortfall in EL, commutation of HPL shall not be permissible.

(3) Leave encashment is allowed to industrial employee’s w.e.f.7.11.2006



               Leave encashment at the time of retirement, whether on superannuation or otherwise, is fully exempt from income tax. Leave encashment under different situation is regulated as under:

(i)One superannuation –leave encashment for EL and HPL (maximum 300 days) calculated as above shall be payable.


(ii)On expiry of extension of services in public interest, beyond  the date of superannuation- leave encashment allowed for EL and HPL at his credit on the date of retirement + EL and HPL earned during the period of extension –EL and HPL availed during such period, subject to a maximum of 300 days.


(iii)On voluntary/premature retirement or an employee, becoming permanently incapacitated/invalid for service-leave encashment is allowed for EL and HPL to his credit subject to a maximum of 300 days.


(iv)On termination of service by notice/notice pay- leave encashment EL and HPL at credit subject to a maximum of 300 days is allowed.


(v)On resignation or quitting service-leave encashment of EL up to half of such leave to his credit, subject to a maximum of 150 days is allowed.


(vi)On termination of re-employment after retirement-Leave encashment of EL and HPL at his credit up to maximum 300 days (including leave enchased earlier on retirement) is allowed.

            Leave encashment in such cases shall be calculated with reference to pay fixed in the scale of post of re-employment before adjustment of pension and pension equivalent of other retirement benefits plus dearness allowance on such pay.


(vii)On absorption in PSUs/Autonomous Bodies-Leave encashment of EL to his credit on the date of permanent absorption (applied through proper channel) up to maximum of 300 days is allowed.