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Thread: LTC Leave encashment and deductions of leave from leave account

  1. #1
    Member Dulal is on a distinguished road
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    Default LTC Leave encashment and deductions of leave from leave account

    Sir,
    A person has applied for LTC (All India) for the block period 2010-13 on E.L. for 8 days and also applied for 10 days leave encashment as per latest rule on encashment of leave.

    Now, question is, how many days of leave will be deducted from his leave account,
    whether it will be 8 days or 18 days.

    please clarify,

    thanks in advance

  2. #2
    Senior Member Victor is on a distinguished road
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    Quote Originally Posted by Dulal View Post
    Sir,
    A person has applied for LTC (All India) for the block period 2010-13 on E.L. for 8 days and also applied for 10 days leave encashment as per latest rule on encashment of leave.

    Now, question is, how many days of leave will be deducted from his leave account,
    whether it will be 8 days or 18 days.

    please clarify,

    thanks in advance
    Obviously 18 days.

    Victor

  3. #3
    Senior Member RKPATHAK is an unknown quantity at this point
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    Leave account be debited by 18 days

  4. #4
    Member krishnan09 is on a distinguished road
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    Dear friends,
    The DOPT vide letter F.No.31011/4/2008-Estt(A) dated 23/9/2008 clarified that the leave encashed at the time of LTC WILL NOT BE DEDUCTED from the maximum amount of earned leave encashable at the time of retirement.
    The DOPT further clarified to Controller of Defence Accounts that “Leave encashed alongwith LTC will not be deducted from the maximum of EL encashable at the time of retirement w.e.f.. 01.9.2008 irrespective of whether the leave encashment with LTC was availed prior to 01.9.2008 or not(Authority: No. AN/XIV/141G2/LTC Dated 29 .12.2009.).

    In these two clarifications they clarified that the LEAVE ENCASHED AT THE TIME OF LTC WILL NOT BE DEDUCTED. . Otherwise, the DOPT would have written " will be deducted from EL encashable". Also note that the retirement may take place at any movement (ie., due to death, VRS, compuslory retirement, etc.etc.). So whatever is available at the credit will be subject to 300.

    Please see the following links.
    http://india.gov.in/govt/studies/ltc.pdf
    http://cgstaffnews.com/?p=1246
    http://persmin.gov.in/WriteReadData/...tt.(L)0001.pdf

  5. #5
    Senior Member Victor is on a distinguished road
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    Quote Originally Posted by krishnan09 View Post
    Dear friends,
    The DOPT vide letter F.No.31011/4/2008-Estt(A) dated 23/9/2008 clarified that the leave encashed at the time of LTC WILL NOT BE DEDUCTED from the maximum amount of earned leave encashable at the time of retirement.
    The DOPT further clarified to Controller of Defence Accounts that “Leave encashed alongwith LTC will not be deducted from the maximum of EL encashable at the time of retirement w.e.f.. 01.9.2008 irrespective of whether the leave encashment with LTC was availed prior to 01.9.2008 or not(Authority: No. AN/XIV/141G2/LTC Dated 29 .12.2009.).

    In these two clarifications they clarified that the LEAVE ENCASHED AT THE TIME OF LTC WILL NOT BE DEDUCTED. . Otherwise, the DOPT would have written " will be deducted from EL encashable". Also note that the retirement may take place at any movement (ie., due to death, VRS, compuslory retirement, etc.etc.). So whatever is available at the credit will be subject to 300.

    Please see the following links.
    http://india.gov.in/govt/studies/ltc.pdf
    http://cgstaffnews.com/?p=1246
    http://persmin.gov.in/WriteReadData/...tt.(L)0001.pdf
    Kindly refer to Post #1 on this subject.

    Your expert opinion is solicited on the no. of days that will be deducted in the EL A/c.

    8 or 18 days.

    Victor

  6. #6
    Member krishnan09 is on a distinguished road
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    Default Encashment of leave on LTC

    Dear Mr.Victor

    The applied EL of 8 will be deducted from EL credit. and the encashed leave of 10 will be calculated separately subject to maximum of 60 in the whole service, if the DOPT clarifications are followed .I am not the one to give expert opinion. I simply translate its meaning of the clarifications based on word by word wherein no chance for presumptions. There is no scarcity for words in English and the DOPT would have mentioned that the EL encashed will be deducted from EL credit. Since these words are not there in the original as well as in the clarification of DOPT, I stand to my earlier point.

    Further, the DOPT is playing with the employees now a days, for example first at the time of 6th cpc implementation, they said the pay as on 1.1.2006 has taken into account for fixation. Later in order to please their own troupe they converted "as on" into "before". Further the GP is derived as 40% of maximum of the pre-revised scale. Now GP 4200 is going to be given between UDC and Assistant. Whereas the assistants themselves were in 5500-9000 as on 1.1.2006 or before 1.1.2006, but they were given 4600 GP from 1.1.2006/2.1.2006. So similarly now a days the rules and interpretations are based on its relativity rather than its word meaning. But the people of India were under the impression that there was only one FR as far as fixation of pay of Central government employees are concerned. Whereas now that also changed and the persons drawing same scale of pay in CSS and field offices are treated separately for fixation without introducing separate FR.

    Now, I am in dilema whether to understand DOPT letter as was stated or to follow something else as stated in the penultimate para.

    Also read the following links

    http://bsnlrules.blogspot.com/2010/1...ent-of-10.html

    http://cgda.nic.in/adm/leave_encash_ltc.pdf
    Last edited by krishnan09; 31-05-2011 at 08:54 PM.

  7. #7
    Senior Member prasannakumar is on a distinguished road
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    Quote Originally Posted by Dulal View Post
    Sir,
    A person has applied for LTC (All India) for the block period 2010-13 on E.L. for 8 days and also applied for 10 days leave encashment as per latest rule on encashment of leave.

    Now, question is, how many days of leave will be deducted from his leave account,
    whether it will be 8 days or 18 days.

    please clarify,

    thanks in advance
    Sir,
    It is 8 days of leave availed + 10 days leave encashed (Max 60 days)= 18 days

    Prasanna Kumar

  8. #8
    Junior Member mswani_nit is on a distinguished road
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    @krishnan09

    The DOPT clarifications does not refer to what u mean. In fact earned leave availed/en-cashed on LTC are both to be deducted from the EL at credit. However, the encashment of EL during LTC will not effect the encashment of maximum of leave at the time of retirement i.e 300 days. In other words the total leave encashable during the whole service amounts to 60 days along with LTC +300 days at the time of retirement if accumulated during the service.

  9. #9
    Junior Member svreddy is on a distinguished road
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    Naturally it is 18 days. 8 days are deducted as leave availed and 10 days as encashment of leave from the leave account after sanction of EL encashment if sufficient leave is at credit. Besides a separate record is maintained with respect to encashment of leave.

  10. #10
    Senior Member R K Rao is on a distinguished road
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    My humble opinion and understanding of the order on the subject is as under :

    Earlier the provision of encashing a part of EL was there but people seldom used to resort to it because, naturally the emoluments for encashment will be much higher at the time of retirement than while during service and the EL encashed during service was to be deducted from the total credit at the time of retirement.

    THIS has been delinked. Now, one can avail encashment of EL upto 60 days in his entire service but this will not be deducted from the total of 300 or less - what ever is at his credit on the date of his cessation from service.

    Since employees keep earning leave every year, this provision is more or less an incentive, keeping such provisions available in private sector (encashment of leave).

    Supposing an employee ceases to be in service due to VRS, death etc., then the total number of unused earned leave at his credit will natrually be encashed by his family.

    We must also not forget that the title itself is called "Encashment of Earned Leave" - i.e. Like Mr. Victor had earlier said, one has to have 'something to encash it' and here it is the 'Leave'.

    Now let us consider a case - An employee is on EOL w/o pay for long periods (say 6 month or more) and he proceeds on a couple of days CL, immediately on his rejoining. Can he avail encashment of EL for 10 days at that time?

    If the encashment was not linked to leave and is simply an incentive to the employees, then the Govt. would have named it as "Bonus during LTC" or some such thing. It is worth noting that the Govt has not linked the encashment to other types of leave i.e. it is not 'encashment of medical leave/ casual leave/ etc. etc.'.

    The de-linking we keep discussing here is - the 60 days or less benefit availed by an employee is no longer to be deducted from the credit of the employee at the time of his cessation from service but is to be accounted for separately. It (the EL) is to be ACCOUNTED FOR separately but not to be IGNORED. In a nutshell, the entitlement of an employee for encashment in his entire service is Actual leave balance at his credit at the time of cessation from employment (subject to a max of 300 days)+ No. of days encashment availaled by him (subject to a max of 60 days).

    Before concluding, let me repeat one of my queries again - Can an employee who has absolutely no credit in his EL account, encash 10 days emoluments by taking a couple of days CL?

    As I began this post - These are my humble opinions. I may say I am rather thinking aloud. I do hope the confusion prevailing regarding the subject reaches those concerned at the DOPT and a proper and simple worded clarification is offered by them at an early date.

    Regards.

    RK Rao
    Last edited by R K Rao; 01-06-2011 at 04:54 AM.

  11. #11
    Senior Member Victor is on a distinguished road
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    I completely agree with prasannakumar, mswani_nit, svreddy and RK Rao.

    You can only "encash" what you have in your "possession".

    Can somebody while availing LTC on Casual Leave and with no EL at credit, be also entitled to "enashment" of 10 days EL????

    Also please refer to Case No. 11 in the Readers' Forum of the May 2011 issue of SwamyNews.

    Victor

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