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Encashment of Leave

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Retirement (w.e.f 1.1.2006)

  • Consequent to 6 th CPC recommendations both LAP and LHAP shall be considered for encashment subject to a maximum limit of 300 days.
  • Cash equivalent in lieu of LAP = Pay plus DA admissible on the date of retirement  * No of LAP at credit (max overall limit of 300) / 30
  • Cash equivalent in lieu of LHAP = Half pay plus DA admissible on the date of retirement  * No of LHAP at credit (max overall limit of 300) / 30
  • To make up shortfall of LAP no commutation of LHAP permitted.

Permanent absorption in Public Sector Undertaking

  • A railway servant who has been permitted to be absorbed in a post in a PSU  owned or controlled by the Central/State Government shall be granted, cash equivalent of leave salary in respect of both leave on average pay leave on half average pay at the credit of the Railway servant subject to a maximum of 300

Dying in harness/resignation/cumpulsory retirement

  • In case of a Railway Employee dying in harness the Leave encashed amount shall be paid to family.
  • A Railway Employee who quits/ resigns shall be entitled to cash equivalent of  LAP at credit on date of cessation of service to the extent of half of such leave at credit subject to a maximum of 150 days encashment.
  • Railway Employees who  are compulsorily retired under DAR can be sanctioned encashment of LAP as per rules. 
  • Amount is calculated as (Pay + DA)/30 * LAP at credit(subject to maximum).
  • Consequent to 6 th CPC recommendations both LAP and LHAP shall be considered for encashment subject to a maximum limit of 300 days. (w.e.f 1.1.2006).
  • Cash equivalent in lieu of LAP = Pay plus DA admissible on the date of retirement  * No of LAP at credit (max overall limit of 300) / 30
  • Cash equivalent in lieu of LHAP = Half pay plus DA admissible on the date of retirement  * No of LHAP at credit (max overall limit of 300) / 30
  • To make up shortfall of LAP no commutation of LHAP permitted.

Ref:

  1. Railway Board’s letter No. F(E)III/2008/LE-1/2 dated 27/10/2011 (RBE No. 153/2011)

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