Saturday, October 23, 2010

How to calculate the amount of Encashment of Leave Salary...

Here we have taken for reference the Office Order issued by Ministry of Labour & Employment, Labour Bureau dated on 23.09.2010.

In this order the department calculate the encashment of leave salary for 300 days earned leave for an employee, who retired on 31.08.2010. [As per the Rule 39(2) C.C.S. (Leave) Rules, 1972 - DOPT Office Memorandum No.14028-7-97-Estt(L) dated 7th October, 1997]

The Calculation of leave salary is as under :-

Earned leave standing at the credit on the date of retirement = 300 days.

Pay 16290
Grade Pay 4800
DA @ 45% as on 1.7.2010 9491
Total 30581


Calculation for 300 days...

30581 X 300 / 30 305810


Total Leave Salary admissible = Rs.3,05,810
(Rupees Three Lakh five thousand eight hundred ten only)
To view the Office Order click here

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