Leave encashment calculation formula: A Central Government Employee is allowed to encash his/her earned leave along with leave travel concession. The facility can be availed while the employee is in service.
According to the updated Central Civil Services (Leave) Rules, 1972, a Government servant may be permitted to encash earned leave up to 10 days at the time of availing of Leave Travel Concession while in service. However., this is subject to the following conditions:
First, the employee should have a balance of at least thirty days of earned leave to his/her credit after taking into account the period of encashment as well as leave being availed of.
Second, the employee cannot encash more than 60 days of leave in his/her entire career. “The total leave so encashed during the entire career does not exceed sixty days in the aggregate,” the CCS (Leave) Rules say.
Cash Equivalent Calculation formula
According to the updated CCS (Leave) Rules 1972, the cash equivalent for encashment of leave under sub-rule the above rule shall be calculated as per the following formula:
Cash equivalent = (Pay admissible on the date of availing of the Leave Travel Concession plus Dearness Allowance admissible on that date/30) x Number of days EL subject to the maximum 10 days at one time.
In the calculation of the cash equivalent as per the above formula, House Rent Allowance is not included. Further, the period of earned leave encashed can not be deducted from the quantum of leave that can normally be encashed by the Government servant under Rules 6,39,39-A, 39-B, 39-C and 39-D, the updated CCS rules say.
What if the employee fails to avail LTC
In case a Government servant fails to avail the Leave Travel concession within the time prescribed under the Central Civil Services (Leave Travel Concession) Rules, 1988, then s.he will have to refund the entire amount of encashed leave. He Government servant will also have to pay interest at the rate of two per cent over the rate of interest followed by the Central Government as applicable to Provident Fund balances.
Also Read: Top 22 ETFs/Index Funds with more than 18% returns in 3 Years till 22nd Sep 2022
“If the Government servant fails to avail the Leave Travel Concession within the time prescribed under the Central Civil Services (Leave Travel Concession) Rules, 1988, then he shall be required to refund the entire amount of leave so encashed along with interest at the rate of two per cent above the rate of interest allowed by the Government as applicable to Provident Fund balances and shall also be entitled for credit back of leave so debited for leave encashment,” the CCS rules say.