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(viii)On death while in service or after retirement/cessation of service but before actual receipt of leave encashment-Leave encashment of EL and HPL at his credit up to a maximum of 300 days shall be allowed to the members of employee’s family (including in case of a re-employed pensioner who dies while in service) in the following order of preference:
Leave encashment can be withheld, wholly or partly, in respect o fan employee who retires on superannuation while under suspension or while disciplinary/criminal proceedings are pending against him, for possible deduction at the end of the proceedings.
Leave Encashment at the time of availing LTC.
Leave encashment of up to 10 days of earned leave can be availed at the time of LTC, subject to following conditions.
(a) The total leave so enchased during the entire career shall not exceed 60 days in aggregate.
(b) A balance of at least 30 days of EL is still available to his credit, after availing leave and leave encashment.
(c) Earned leave up to 10 days may be enchased at the time of availing both Home Town and all-India LTC.
(d) In case the same LTC is being availed of by the Government servant and his family members separately in a block, leave encashment would be restricted to one occasion only.
(e) The period of leave enchased shall not be deduction from the quantum of leave that can be enchased at the time retirement/death, etc.
(f) If LTC is not availed (after encashment ) within prescribed time limit, the entire amount enchased along with interest @ 2% above the interest for GPF shall be refunded and the leave will be credited back.
(g) Leave encashment can be availed by re-employed pensioners entitled for LTC also subject to 60 days limit for the service period and re-employment period put together.
Amount of leave encashment shall be as under:
Pay + DA on the date of No of days of EL encased
Availing LTC X (maximum 10 at a time)
Note: HRA is not to be considered for calculating leave encashment.
Central Govt. employees who are-
(a) Entitled to LTC but opt for the facility of LTV provided to their spouses employed in PSU/Autonomous Bodies, etc, or
(b) Not entitled to LTC on account of their spouses being employed in India Railways/National Airlines and entitled to privilege passes/concessional tickets,
Can also avail leave encashment as above, at the time of availing LTC facility/privilege passes/concessional tickets of their spouses.