How cash equivalent for encashment of leave of Central Govt Employees is calculated – formula


Holiday Allowance Calculation Formula: A central government employee is allowed to claim their earned holiday together with holiday travel benefits. The facility can be used during the employee’s working hours.

Under the updated Central Civil Services (Leave) Rules, 1972, a government official may be permitted to redeem up to 10 days of earned leave at the time of claiming the leave travel benefit during his or her period of service. However, this is subject to the following conditions:

First, after taking into account the period of redemption as well as vacation taken, the employee should have a balance of at least thirty days of earned vacation.

Second, the employee cannot redeem more than 60 vacation days in his entire career. “Total leave so redeemed throughout career shall not exceed sixty days in total,” the CCS (leave) rules state.

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Formula for calculating the cash equivalent

Under the updated CCS (Holiday) Rules 1972, the cash equivalent for the redemption of holiday under the sub-rule of the rule above is calculated according to the following formula:

Cash Equivalent = (Eligible Earnings at the Date of Claiming Vacation Travel Credit plus Supplement Allowance at that Date/30) x Number of EL days, subject to the maximum of 10 days at a time.

When calculating the cash equivalent using the above formula, the rent for the apartment is not taken into account. In addition, the time of redeemed earned leave cannot be deducted from the amount of leave normally redeemable by the government official under updated Rules 6, 39, 39-A, 39-B, 39-C and 39-D, the CCS Rules say .

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What if the employee does not claim LTC?

If a government official does not claim the vacation travel concession within the time prescribed by the Central Civil Services (Leave Travel Concession) Rules 1988, he must return the entire amount of the vacation redeemed. The government official is also required to pay interest at a rate of two percent above the central government interest rate applied to provident fund balances.

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“If the Government Official fails to claim the vacation travel concession within the time prescribed by the Central Civil Services (Leave Travel Concession) Rules 1988, he must return the entire amount of vacation so collected together with interest at a rate of two per cent above that permitted by the Government interest rate on provident fund balances and are also entitled to a credit for the leave so charged for the redemption of the leave,” the CCS Rules read.





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