7th CPC Earned Leave Encashment Calculation for Central Government Employees

7th CPC Earned Leave Encashment Calculation for Central Government Employees

7th CPC Earned Leave Encashment

Earned Leave (EL) or Leave on Average Pay (LAP)

Presently 30 days EL per annum is granted to Civilian employees and 60 days to Defence personnel. EL can be accumulated up to 300 days in addition to the number of days for which encashment has been allowed along with LTC. Suggestions have been made to increase the accumulation to 450 days, allow encashment of 50 percent of the accumulated EL after 20 years of service and delink encashment of leave from LTC. A novel concept of “gifting” has been put forward, wherein employee should be allowed to ‘gift’ certain number of days of leave to one’s spouse or one’s colleague. “Vacational” staff like teachers, principals, etc. have demanded restoration of 10 days EL, which was changed to 20 days Half Pay Leave by VI CPC.

7th CPC Analysis and Recommendations

In many organizations, employees are encouraged to take leave on the premise that it revitalizes them and is beneficial for the organization in the long run. Such a system is not prevalent in the government sector in India, but substituting leave with cash is also not desirable. Hence, no change in encashment guidelines is recommended.

The Commission recognizes that Earned Leave is, as the name suggests, earned by an employee through the services rendered. Hence, it is personal to the employee and the concept of “gifting” cannot be considered.

The demand of “Vacational” staff can, however, be agreed to. Hence, it is recommended that “Vacational” staff be granted 10 days EL in place of 20 days Half Pay Leave. Other than this no other change is recommended.

Enhancement of ceiling of Earned Leave for purposes of Leave Encashment

The Commission has received representations seeking raising the ceiling limit of 300 days to 450 days for purposes of Leave encashment.

7th CPC Analysis and Recommendations

The Commission notes that based on the recommendations of the VI CPC, serving employees are entitled for encashment of Earned Leave up to 60 days while in service. This is not to be deducted from the maximum number of Earned Leave of 300 days encashable at the time of retirement. The VI CPC, therefore, has further liberalised the regime of leave encashment.

The recommendations in relation to pay of both the civilian and defence forces personnel will also lead to a significant increase in the pay drawn and therefore in the total amount of leave encashment available for an employee. Therefore raising the present ceiling of 300 days is not recommended by the Commission.

7th CPC Leave Encashment Calculation Formula

  • Earned Leave = [(Basic Salary + DA) / 30] x No of days
  • Hal Pay Leave = [(Half Pay Leave Salary + DA) / 30] x No of days

earned leave

7th CPC Leave Encashment Calculator

How to Calculate Leave Encashment

As per the rule, Eligible employees can encash a total of 300 days Earned Leave, n case earned leave less than 300 days, then the remaining leaves can be taken from HPL, in total 300 days allowaed for leave encashment at the time of retirement.

DOPT ORDERS on Leave Encashment

  • No.14028/1/2019-Estt.(L), dated 20th June, 2019 – Leave encashment to officers appointed on contract in various posts under Government – Click here to check the O.M
  • No. 14028/1/2017-Estt(L), dated 27th June 2017 – Clarification in respect of encashment of Earned Leave to reemployed pensioners- Reg – Click here to check the O.M
  • No.14028/2/2012-Estt(L), dated 9th February, 2015 – DOPT Order on Encashment earned leave alongwith LTC – Click here to check the O.M

 Leave Encashment with LTC – FAQs

  • Whether encashment of leave is allowed after LTC is availed?

Sanction of leave encashment should, as a practice, be done in advance, at the time of sanctioning the LTC. However, ex-postfacto sanction of leave encashment on LTC may be considered by the sanctioning authority as an exception in deserving cases within the time limit prescribed for submission of claims for LTC.

  • Whether encashment of leave with LTC can be availed at the time when the LTC is availed by the Government servant only or can leave be encashed at the time when LTC is availed by family members?

Yes. A Govt. servant can be permitted to encash earned leave upto 10 days either at the time of availing LTC for himself or when his family avails it provided other conditions are satisfied.

  • Whether leave encashment should be revised on retrospective revision of pay/D.A?

In terms of 38-A of CCS(Leave) Rules, encashment of EL alongwith LTC is to be calculated on pay admissible on the date of availing LTC and DA admissible on that date. If pay or DA admissible has been revised with retrospective effect, going by the rule the Govt. servant would be entitled to encashment of Leave on the revised rates.

  • Whether encashment of Earned Leave and Half Pay Leave is admissible to industrial employees?

The industrial employees, other than those under the cadre control of the Ministry of Railways, are entitled to encash both Earned Leave and Half Pay Leave, subject to overall limit of 300. The cash equivalent of Half Pay Leave shall be equal to leave salary admissible for Half Pay Leave plus Dearness Allowance admissible on the leave salary without any reduction being made on account of pension and pension equivalent of other retirement benefits payable. But no commutation of Half Pay Leave shall be allowed to make up for the shortfall in Earned Leave and these orders are effective from 07-11-200640M No. 12012/3/2009- Estt.(L) dated 28-12-2012)

Leave Encashment Calculator


  1. I’m going to superannuate on 31.01.2024; as on 01-01-2024 my EL balance will be 300+3, i.e., 3 days. Now if I take LTC (5 days EL) along with 10 days EL encashment during January, 2024, how much EL will remain in my account for encashment at the time of retirement on 31.01.2024. I heard that 10 days leave encashment period is not debited from leave account; is it correct ??

  2. Sir what is the formula for calculation of Leave encashment for doctors in Central govt who are entitled for NPA (non practice allowance)..??

    Whether NPA(non practice allowance) is added to basic and DA for the calculation of leave encashment.

  3. Sir is it necessary to give prior intimation for encashment of earned leave before proceeding on leave I work for central govt and my leave sanctioning authority has refused to grant leave encashment order as I had given intimation after returning of leave. GOI OM No 21011/08/2013-Estt(AL) dated25.03.2013 q number 2 is relevant. I was not know number of time I had taken leave encashment. I have to go in CAT any person can help me I will be thankfull I am due for retirement in 9 months


  5. While calculating Leave Encashment on Retirement, Non Practicing Allowance is included or not?

  6. I had 304 earned leaves in my account and I opted for 10 days leave encashment with LTC . My query is whether earned leave of 10 days encashed with LTC will be reduced from 304 EL’s at the time of retirement or not as per recommendations of 7th CPC . Pl share your opinion on this

    • Leave will be deducted now from 304 days and your balance leave will be 294 days. But it will add up again with further service and limit of leave encashment will remain at 300.

      • Sir, I was retired as Head Teacher and having 189 days earned leave in my leave account can I eligible for leave Encashment for 111 days half pay leave to achieve total no of day 300 for encashment of leave.

  7. Can I take ltc for the year 2022-23 in Feb 2022 I join in the central government department in the year April 2017 can I am eligible for this ltc block 2022-23.

  8. I had availed LTC Cash voucher for the year 2018-19, now could i eligible for LTC leave encashment (10 day) for the year 2020-21

  9. Is the LEAVE ENCASHMENT (10DAYS EL) on special LTc be come under income tax deduction
    When 12percent GST is paid why is it come under tax

  10. Is the LEAVE ENCASHMENT (10days)amount on special LTC pack be come under income tax deduction.when it is utilised for purchase of an item which consists 12percent GST,is it yet come under income tax deduction.

  11. Personnel who retired on 31 Aug 2016 before implementation of recommendations of 7th CPC and his pension and other entitlement has been released as per their present Basic Pay (6th CPC). After implementation of recommendations of 7th CPC their Basic Pay have been revised wef 01 Jan 2016 and pensionery benefits wef 01 Sep 2016. But benefits of 300 days leave encased during entire service calculated based on their Basic salary as on 31 Aug 2016(6th CPC). Please clarify whether they are eligible to get benefits of 300 days leave encased during service will be calculated based basic pay as on 31 Aug 2016 (Old Basic Pay) or New Basic Pay revised wef 01 Jan 2016.


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