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Home Personal Finance Important news for employees! Leave encashment will be paid in this way,...

Important news for employees! Leave encashment will be paid in this way, order issued by DoPT

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Cash Transaction Update: Income tax notice will come on these 5 cash transactions, new rules apply
Cash Transaction Update: Income tax notice will come on these 5 cash transactions, new rules apply

20A(4)(a) of the AIS (Leave) Rules, inter alia, provides for payment of cash equivalent to the applicable leave salary in the account of a member.

Big news for employees. In fact, new orders have been issued by DoPT regarding the payment of leave encashment of 6th-7th pay commission employees. According to the order issued, at the time of retirement, superannuation, after suspension or disciplinary action, is to pay leave encashment. They will be paid only under this rule.

Instructions have been given to pay leave encashment in respect of AIS officers pending under suspension or disciplinary/criminal proceedings at the time of retirement/superannuation. According to the order, it has been directed to refer to the various references received in the department, seeking clarification on the subject mentioned and the scope of application of 20A(4)(a) of the AIS (Leave) Rules, 1955.

It may be noted that 20A(4)(a) of the AIS (Leave) Rules, inter alia, provides for payment of cash equivalent to the applicable leave salary to the account of a member. Service (MOS), who have been permitted to retire from service voluntarily during suspension by the State Government or who have been retired by the Central Government in public interest during suspension.

Clarifications are being sought in this department regarding payment of leave encashment to such service members who were under suspension or against whom disciplinary/criminal proceedings were pending at the time of retirement/superannuation.

In view of the above, the matter has been duly examined under the AIS (Leave) Rules, 1955 and other relevant rules/provisions/instructions. It is clarified that in case of a MoS who is under suspension or against whom disciplinary/criminal proceedings are pending at the time of his retirement/superannuation, the authority competent to grant leave may withhold the whole or a part of the leave encashment.

If in the view of such authority some money is likely to be recovered from him at the conclusion of the proceedings against him. At the conclusion of the proceedings, he will become eligible for the withheld amount after adjustment of the Government dues, if any. The above clarification may kindly be brought to the notice of all concerned officers/authorities for necessary action.

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