Encashment of leave on Half Pay at the time of retirement of Government Employees (G.O.Ms.No.342.Dated: 30-9-1994)

ANDHRA PRADESH GOVERNMENT ORDER

Encashment of Leave on Half Pay at the Time of Retirement

Rules and provisions applicable to Government Employees

G.O. Number G.O.Ms.No.342

Order Date 30 September 1994

Department Finance Planning Department

Subject Leave Encashment on Half Pay at Retirement

About the Government Order

The Government of Andhra Pradesh, through G.O.Ms.No.342, dated 30-09-1994, extended the benefit of encashment of Half Pay Leave standing to the credit of eligible State Government employees at the time of retirement, subject to the conditions prescribed in the order.

Important: The order provides for Half Pay Leave encashment on retirement on superannuation pension, retiring pension or invalid pension, subject to the prescribed conditions and deductions.

Eligibility

• Employees retiring on superannuation pension.
• Employees retiring on retiring pension, subject to the conditions in the order.
• Employees retiring on invalid pension, subject to the conditions in the order.
• Half Pay Leave must be available to the employee's credit on the relevant date of retirement or invalidation.

Calculation of Half Pay Leave Encashment

As specified in paragraph 9(a) of the order, the cash equivalent is calculated using the leave salary on Half Pay, admissible Dearness Allowance and the prescribed pension-related deductions.

Cash Equivalent = [(Half Pay Leave Salary + admissible DA) − (Pension + Pension Equivalent of Gratuity + Dearness Relief on Pension)] × Number of HPL Days ÷ 30

This is a simplified presentation of the formula in the Government Order. Actual calculation must follow the applicable rules, admissible components and prescribed limits.

Important Conditions

• For retiring pension and invalid pension cases, the combined encashment period of Earned Leave and Half Pay Leave must not exceed the period between retirement and the normal superannuation date.
• Earned Leave encashment up to 240 days may be allowed even when it exceeds that period, as specified in paragraph 9(ii).
• House Rent Allowance (HRA) and City Compensatory Allowance (CCA) are not payable on the Half Pay Leave cash equivalent.
• The Pension Equivalent of Gratuity is to be calculated with reference to the Andhra Pradesh Civil Pensions (Commutation) Rules, 1944, as stated in the order.
• If the relevant Half Pay Leave salary plus admissible DA falls short of pension, Pension Equivalent of Gratuity and Dearness Relief on pension, the cash equivalent of Half Pay Leave is not to be granted.

Cases Excluded Under the Order

• Employees who are compulsorily retired.
• Employees who have resigned or quit service.
• Employees who are re-employed after retirement.

Effective date: Paragraph 11 states that the orders come into force with effect from 01-09-1994 and are applicable only to cases of retirement on or after 30-09-1994.

Source: Government of Andhra Pradesh, G.O.Ms.No.342, Finance Planning Department, dated 30-09-1994. This summary does not replace the original Government Order.

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