Calculation of Leave Encashment LPR 25.05.1999

Calculation of Leave Encashment LPR 25.05.1999

OFFICE MEMORANDUM

Subject: Leave Encashment

It has been observed that there is no uniform policy in calculation of leave encashment for 180 days which is usually drawn after retirement, the basis of rate of Pay drawn on the last day of duty. The field Offices have adopted various methods for calculation of encashment of L.P.R which resulted in short/ excess payments.

2. In Order to remove disparity and for adoption of a uniform policy has been decided that encashment of L.P.R may be calculated in accordance the formula 1.0 180×12/365=5.918 months multiplied with monthly rate pay drawn on the last day of duty to determine the amount.

Please acknowledge its receipt.