LTC Leave Encashment under Rule 38-A of CCS (leave) Rules, 1972 – Explained

We provide here a discussion on relevant provisions and procedures for encashment of 10 days of leave while proceeding on Leave Travel Concession.  It is applicable both for All India LTC and Home Town LTC.

Prior to 1997, encashment of Earned Leave up to a maximum of 300 days was allowed only at the time or retirement.  When a Government Servant quits service or resigns, the encashment was restricted to a maximum of 150 days.

The first instruction for allowing the encashment of Earned Leave while proceeding on LTC came in the year 1997.  In the Office Memorandum No: 14028/7/97-Estt.(Leave) dated 7.10.1997 it was ordered by the Government that the encashment of earned leave while proceeding on LTC is allowed subject to the condition that total encashment of Earned leave allowed to a government servant including EL encashment for LTC while in service should not exceed maximum limit of 300 days.

Due to this restriction, there were no much takers as the encashment of EL while in service would reduce the maximum days of EL that was allowed to be encashed at the time of retirement.

For more details about this earlier restriction check this Office Memorandum No: 14028/7/97-Estt.(Leave) dated 7.10.1997.

After implementation of Sixth Pay Commission report, this restriction was totally removed.  As per Office Memorandum F.No: 31011/4/2008-Estt.(A) dated 23.09.2008, Government Officers are allowed to encash ten days Earned Leave at the time of availing of LTC to the extent of sixty days during the entire career.  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.

Check this Office Memorandum F.No: 31011/4/2008-Estt.(A) dated 23.09.2008 for more details

Further, in the Office Memorandum No: 14028/4/2009-Estt.(L) dated 03.06.2009, it was decided by the Government that encashment of earned leave is allowed upto 10 days at the time of availing LTC without any linkage to the number of days and the nature of leave availed while proceeding on LTC.  We can utilse other forms of leave such as CL while proceeding on LTC for saving EL for encashment at the time of retirement and yet avail EL encashment for LTC.  This change is really a welcome one.

For more details check this Office Memorandum No: 14028/4/2009-Estt.(L) dated 03.06.2009.

Procedure for availing EL Encashment:

Apply for leave in the prescribed form with a declaration that LTC is intended to be availed.  A request for encashment of EL while proceeding on LTC is also be furnished simultaneously.  The said request could be made in the following format.

Download APPLICATION FOR ENCASHMENT OF EARNED LEAVE FOR L.T.C. PURPOSE