# Thread: leave encashment on retirement

1. ## leave encashment on retirement

I am having EL balance of 300+ 4 days as on 1st july 2009. I propose to utilise leave of 20days before end of this year . My retirement day is 31st March,2010. From leave encashment at the time of retirement point of view, which kind of leave is beneficial for above 20 days of leave to be used? Is it half pay leave of 20 days or EL of same number?

2. You have 304 days as of now. you will get a credit of 15 days on Jan 19 and some days for the remaining months till u retire. which makes the total more than 320 days. since u can encash only 300days, it doesn't matter if u avail 20 days of EL. But what about ur HPL? is it overflowing? hw much can u encash these hpls? Can some one clarify the encashing of HPLs at the time of retirement?

3. ## Availing EL at the time of retirement

Originally Posted by srikanti subrahmanyam
I am having EL balance of 300+ 4 days as on 1st july 2009. I propose to utilise leave of 20days before end of this year . My retirement day is 31st March,2010. From leave encashment at the time of retirement point of view, which kind of leave is beneficial for above 20 days of leave to be used? Is it half pay leave of 20 days or EL of same number?

I think Mr. Jarunan has not calculated properly.

On July, 2009 the credit available is 300 + 4

If you take 20 days' EL before end of this year, balance credit will be 284

As per existing rules, EL credit will be available on pro-rata basis, ie for one month, it is 2 1/2 days. Since you retire on 31.03.2010, you will be given EL credit of 8 days only (3 x 2 1/2 = 7 1/2 rounded off to 8) On January, 2010,

now, the balance credit on 01.01.2010 will be 292 days. So, you will be short of 8 days' credit on 01.01.2010 itself.

So, it is better if you avail medical leave, (commutation of leave), if you have enough credit of Half Pay Leave

4. Dear Subramanyam,
I think Shri Venkat has satisfied your query. However as regards encashment of HPL at the time of retirement, it is not very beneficial. If you have short of EL(from 300 days), suppose by 20 days, then you can encash 20 days HPL(strictly HPL). The total of HPL and EL to be encashed should not exceed 300 days. Encashment of HPL means, getting half pay. While you will encashed 280 EL and 20 HPL, you will get a sum equivalent to 290 days EL. I hope it is clear to you and thus you should not take EL of 20 days istead you may opt for Comm.Leave.
with best regards and wish you very happy retirement life
Jitendra

5. ## ENCASHMENT OF lEAVE

Dear Mr. Subramaniam,

You can encash EL for 10 days by availing LTC for the block year 2010-13. This you can do by availing Casual Leave during the period from January to March 2010. You will get encashment of EL for 298 days and HPL for 2 days after retirement as your earned leave on credit as on 1-1-2010 would be 300+8.
Wish U happy retired life
Gopinath

6. ## leave encashment on retirement

Dear jitendar,

I get ur point on el on pro-rata basis. but will our honorable member get the benefit of getting credit of 15 days of el ( or if on pro rata basis on the no of working days he puts) for the period between July- Dec. 2009or not? regards.

7. ## leave encashment on retirement

i am much obliged to all the members of g-connect discussion forum for their valuable opinions regarding my query on leave encashment at the time of retirement. however, the point i wanted to get clarified was that i want to avail the 20 days leave before this year end for going abroad and hence the question of availing commuted HPL on medical grounds is not possible. the choice was either simple half pay leave or EL. which one of these can be used for this period so as to get the best retirement benefit? my present EL balance as already given is 300+4 days and my retirement is due on 31st march 2010.

srikanti subrahmanyam

8. ## EL encashment on retirement

Originally Posted by srikanti subrahmanyam
i am much obliged to all the members of g-connect discussion forum for their valuable opinions regarding my query on leave encashment at the time of retirement. however, the point i wanted to get clarified was that i want to avail the 20 days leave before this year end for going abroad and hence the question of availing commuted HPL on medical grounds is not possible. the choice was either simple half pay leave or EL. which one of these can be used for this period so as to get the best retirement benefit? my present EL balance as already given is 300+4 days and my retirement is due on 31st march 2010.

srikanti subrahmanyam
Sir,

hoping you don't avail EL during 2010 (Jan to March), it is suggested you avail 8 days of HPL and 12 days of EL this year.

Credit on date = 300 + 4 days

after availing 8 days of HPL and 12 days of EL,

balance credit of EL = 292 days

credit added in January, 2010 = 8 days

Balance credit as on 31.03.2009 = 300 days.

By adapting this formula, you will lose 4 days' pay (since you avail 8 HPL, you are eligible to draw 4 days' pay only for these 8 days.) this year.

But if you avail full 20 days of EL this year, you will lose 8 full days of pay on the date of retirement (as already explained by me in my previous post.

Hope I helped.

9. Further to the clarification of Venkat, availing HPL during this year and encashing full 300 days EL at the time of retirement will be beneficial as the Leave encashment at the time of retirement is Tax Free and the pay you earned this year will be taxable. I had suggested this to some of those who are in the same boat (retiring in first quarter of 2010 with 300 EL balance) in our office and they had done this.

10. A person has worked in GOI organisation for 10 years and later on moved to another autonomous body. In the earlier organisation he encashed 30 days EL and now at the time of retirement he has 300 days EL to his credit. Can somebody please clarify whether 300 days EL can be encashed or 270 days have to encashed after deducting 30 days EL which he has already encashed in his previous organisation.

11. Originally Posted by pummy
A person has worked in GOI organisation for 10 years and later on moved to another autonomous body. In the earlier organisation he encashed 30 days EL and now at the time of retirement he has 300 days EL to his credit. Can somebody please clarify whether 300 days EL can be encashed or 270 days have to encashed after deducting 30 days EL which he has already encashed in his previous organisation.
You are entitled to full 300 days of EL encashment in the 2nd organisation. There is no rule under which the 30 days EL encashed earlier in the previous organisation is to be adjusted/accounted for in the 2nd organisation.

Victor

12. Since you have retired by now it is of no use to plan. Otherwise you could have availed of 19 days leave and encashment of 300 days el

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