7th Pay Commission Report on Leave Encashment of EL
Enhancement of ceiling of Earned Leave for purposes of Leave Encashment
The Commission has received representations seeking raising the ceiling limit of 300 days to 450 days for purposes of Leave encashment.
Analysis and Recommendations : The Commission notes that based on the recommendations of the VI CPC, serving employees are entitled for encashment of Earned Leave up to 60 days while in service. This is not to be deducted from the maximum number of Earned Leave of 300 days encashable at the time of retirement. The VI CPC, therefore, has further liberalised the regime of leave encashment. The recommendations in relation to pay of both the civilian and defence forces personnel will also lead to a significant increase in the pay drawn and therefore in the total amount of leave encashment available for an employee.
Therefore raising the present ceiling of 300 days is not recommended by the Commission.
Source: 7th CPC Report