Leave Encashment


On implementation of 6th PC, provision of Leave Encashment while in service has been introduced subject to following condition.
  1. Leave encashment will be subject to maximum 60 days in entire service.
  2. Maximum up to 10 days in one occasion, debited in the LAP A/c.
  3. Minimum balance of Leave in the A/c should be 30 days after encashment.
  4. One should avail his Pass on this A/C for getting the benefit of encashment.
  5. Encashment will be permissible every alternate year only.
  6. The encashment will not be deducted from the balance at the time of encashment on Retirement A/c i.e one can avail a maximum of 300 (on Retirement) +60 days (on Service) encashment in his entire service.
  7. Not entitled for HRA & Transportation allowance. ( R.B.L.No: F(E)III/2008/LE-1 dt. 8.10.08 RBE.NO: 161/2008)


  1. Board has clarified that the PTO also includes in the term of “Passes” for availing the Leave Encashment. (RBE NO: 194/2008 dt. 3.12.09)
  2. Board further clarified that staff who are directly related with running of trains viz Drivers, Guard etc & SM’s ,ASM’s should be exempted from availing of 10 days leave & Pass/PTO to encash their Leave. (RBE NO: 196/2008 dt. 12.12.08)
  3. It has been decided to permit Rly. Servant to encash LAP upto 10 days without any linkage to the number of days & nature of leave availed at the time of availing Pass/ PTO. ( RBE NO: 14/2009 dt. 11.06.09)
  4. It has been decided to withdraw the exemption granted vide Letter dated 12/12/2008 with immediate effect. Accordingly hence forth the category of running staff, ASM etc. shall also have to fulfill all the conditions prescribed for railway employees for the purpose of availing Encashment of LAP upto 10 days while availing passes/ PTOs. (RB L. No. F(E)III/2008/LE-1/1 dtd. 01/09/2009)
A Railway Servant who proceed on or commuted leave is entitled to leave salary equal to pay drawn immediately before proceeding on LAP. On half average pay or LND is entitled to leave salary equal to half the amount as detailed above. On extra ordinary leave he will not entitled to any leave salary.


In case of death while in service the cash equivalent may be granted to deceased employee’s family without any reduction leave admissible to him not exceeding 300 days on last pay drawn basis.


  1. It has also been decided by the President that the existing provisions of Railway Servants may be modified as follows in respect of Railway Servants.
    • The benefit of leave encashment of unutilized leave on average pay shall be payable upto maximum 300 days.
    • retirement on superannuation.
    • cases where the service of a Railway Servant has been extended in the interest of public service beyond the date of retirement on superannuation.
    • Vol. Retd Pre-matured retirement.
    • Railway Servant are terminated by notice or by payment of pay and allowance in view of notice or otherwise in accordance with the terms of his appointment.
    • Termination, re-employment
    • Death of Railway Servant while in service.
    • LPR on retirement.
    • Transfer of Railway Servant to an industrial establishment.
    • On absorption of a Railway Servant in a central public sector undertaking autonomous body etc.
  2. A Railway Servant who resigns or quits service shall be entitled to cash equivalent in respect of LAP at credit on the date of cessation of service. to the extant of half of such leave at his credit, subject to a maximum of 150 days. (RB No. E(E)III/97/LE-1/3 dated 10.11.19970 ).

All Railway Servant who retired on or after 30.09.1977 may be paid equivalent to leave salary for leave on average pay at their credit at the time of retirement. It shall be limited to maximum of 240 days LAP upto 30.06.1997 which is be raised to 300 days w.e.f. 01.07.1997. It may be paid as one time lump sum payment on settlement. Authority competent to grant such suo-moto issue order for granting LAP at credit on the day of retirement. In case of compulsory retirement under D&AR and pension as a consequence is reduced then leave encashment is not payable. A Railway Servant who resign or quits service shall be entitled to cash equivalent in respect of half the LAP at credit on the day on cessation of service to the extent maximum of 150 days. (RB No. E(P&A)1-98/CPC/LE-6 dated 25.05.1999 & E(P&A)1-98/CPC/LE-6 dated 01.10.1999)

Consequent upon the decision taken by Government on the recommendation of 6th CPC relating to encashment of leave in respect of both earned and HAPL shall be considered subject to over all limit of 300 days. The cash equivalent payable for HAPL shall be equal to leave salary as admissible for HAPL + DA, without any reduction on account of pension or other retirement benefits. The order shall take effect from 01/09/2008.(RBE No. 148/2008 dtd 08/10/2008)


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