Thursday, November 12, 2015

Reckoning of 30% pay element for the purpose of payment towards leave Encashment

No. E(P&A) II -2011 / R S-20 RBE 10/2015 Dated : 12.02.2015

Sub: Reckoning of 30% pay element for the purpose of payment towards leave Encashment upto l0 days to running staff.

Board have issued instructions v ide Letter No. F(E) III/ 2008/ LE-1/1 29/10/2008 on encashment of leave while in service.

2. Some of the Zonal Railways had sought clarification whether 30% pay element to be reckoned for the purpose of leave encashment upto 10 days of LAP to the running staff.

3. The matter has been considered b y the Board and it is clarified that in the case of Running Staff, the calculation of leave encashment upto 10 days will be done in the same manner as in the case of leave salary in terms of Rule 25(i)(k) of “The Rules for the payment of Running and other allowances to the Running Staff on Railways, 1981.”

4. An illustration of the above is shown below:

i. Basic Pay in general = Basic in Pay Band + Grade Pay = BP

ii. Basic Pay of Running Staff = 130% of BP = (A)

iii. DA rate in general = DA%

iv. DA for Running Staff = DA % of (A)= (B)

v. Leave encashment for 1day = A+B/30


5. Other Terms and condition on encashment of leave will remain the same.

6. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

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