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Friday, September 9, 2011

HALF PAY LEAVE ENCASHMENT


GOVERNMENT OF ANDHRA PRADESH 
ABSTRACT 
LEAVE RULES: - Recommendations of PRC 2010 - Encashment of 
Leave  on  Half  Pay  at  the  time  of  retirement  of Government  Employees 
– Orders – Issued. 
-------------------------------------------------------------------------------------- 
FINANCE (FR.I) DEPARTMENT 
G.O.Ms.No. 154             Dated:04.05.2010
                        Read the following:- 
1. G.O.Ms.No. 46, G.A. (Ser.Wel.) Department, dated 28.01.1994. 
2. O.M.No.P.14025/11/82-Estt. (Leave), dated 25.08.1983of 
Department of Personnel and Training, Government of India. 
3. O.M.No. 14020/1/09-Estt. (L). dated 06.04.1993 of Department of 
Personnel and Training, Government of India. 
4. G.O.Ms.No.342, Finance and Planning (FW: FR-I) Department,       
dt. 30.09.1994. 
5. O.M.No.14028/3/2008- Estt. (L) dated: 25-09-08 of Department of 
Personnel & Training Ministry of P.PG & Pension, Government of 
India 
6. G.O.Ms.No.438, G.A. (Spl. A) Department, dated: 07.07.2008. 
7. G.O.Ms.No.598, G.A. (Spl. A) Department, dated: 26.11.2009. 
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O R D E R S:-
 In the reference 4th
 read above orders were issued extending the 
benefit of encashment of Half Pay Leave to the State Government 
Employees as applicable to the Central Government Employees as per 
the reference 2nd
 and 3rd
 read above and  based on the 
recommendations of High Power Committee constituted in the G.O. 1st
read above.   
2. In the Government Order 6th
 read above, orders were issued 
constituting Ninth Pay Revision Commission and Government 
appointed Sri. C.S. Rao, IAS, (Retd) as Pay Revision Commissioner. In 
the Government Order 7th
 read above, the terms of reference of the 
Pay Revision Commissioner were laid down.   3. The Ninth Pay Revision Commission submitted its report to the 
Government on 05.12.2009 and recommended, inter alia, that,  “The 
Commission after examining the above requests recommends to 
adopt the same formula in the case of encashment of Leave on 
Half Pay at the time of retirement / death in the case of State 
Employees also subject to the condition that the total number of 
days of earned leave + leave on half pay put together should not 
exceed 300 days for encashment”. 
4. It is observed in the report that as per the existing orders, the 
cash equivalent of leave salary on account of encashment of leave on 
half pay shall be calculated in the manner indicated below. 
Cash payment 
in lieu of LHP 
encashed  
  

Leave salary on half pay
(+) D.A thereon if admissible 
(-) pension (+) pension 
equivalent of gratuity and 
Dearness Relief on pension. 
_________________________
30  X 
Number of days of 
Leave on half pay 
due, subject to the 
limits prescribed in 
the rules. 
5. The above formula was adopted based on the orders issued by 
Government of India to its employees.  
6. Based on the recommendations of 6th CPC, the Government of 
India issued revised orders changing the formula in the following 
manner- (vide O.M.No.14028/3/2008- Estt. (L) dated: 25-09-08 of 
Department of Personnel & Training Ministry of P.PG & Pension, 
Government of India, 5th
 read above). 
Cash payment 
in lieu of half 
pay leave 
Component 

Half pay leave salary
admissible on the date of 
retirement plus D.A. 
admissible on that date 
_______________________
               30  X 
No. of days of half 
pay leave at credit 
subject to the total of 
earned leave and half 
pay leave at credit 
not exceeding 300 
days. 
7. The Employees’ Associations requested to adopt the above 
formula in the case of encashment of L.H.P. of the State Government 
employees and the Commission after examining the above requests 
recommends to adopt the same formula in the case of encashment of 
Leave on Half Pay at the time of retirement / death in the case of State 
Employees also subject to the condition that the total number of days 
of earned leave + leave on half pay put together should not exceed 300 
days for encashment.  8. After careful consideration of the report, Government decided to 
accept the recommendations of the Pay Revision Commissioner and 
hereby order that formula for calculation of encashment of Leave on 
Half Pay at the time of retirement / death in the case of State 
Employees shall be as follows subject to the condition that the total 
number of days of earned leave + leave on half pay put together 
should not exceed 300 days for encashment. 
Formula
Cash payment 
in lieu of half 
pay leave 
Component 

Half pay leave salary 
admissible on the date of 
retirement plus D.A. 
admissible on that date. 
_______________________ 
               30  X 
No. of days of half 
pay leave at credit 
subject to the total 
of earned leave and 
half pay leave at 
credit not 
exceeding 300 
days. 
9. These orders shall come into force with immediate effect. 
10. The G.O is available on Internet and can be accessed at the 
address http://www.ap.gov.in/goir and http://www.apfinance.gov.in. 
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
L.V. SUBRAHMANYAM 
PRINCIPAL SECRETARY TO GOVERNMENT (FP)
To 
All the Departments of Secretariat (10 copies each) 
The Accountant General, AP., Hyd. (20 copies) 
The Accountant General, AP., Hyd (by Name) 
The Pay & Accounts Officer, Hyd. 
The Secretary to Governor, A.P., Hyderabad. 
All Secretaries to Government. 
The Private Secretary to the Chief Minister and Private Secretaries to all Ministers. 
All the Heads of Departments (including Collectors and District Judges). 
The Registrar, High Court of Andhra Pradesh, Hyderabad (with Covering Letters) 
All the District Treasury Officers. 
The Secretary, Andhra Pradesh GENCO/TRANSCO] 
The General Manger, A.P., State Road Transport Corporation, Hyderabad (with covering letter). 
All District Educational Officer.  
All the District Development Officer. 
All District Panchayat Officers. 
All Secretaries of Zilla Grandhalaya Samsthas through Director of Public Libraries, Hyderabad. 
All Secretaries of Agricultural Market Committees through Director of Marketting,A.P., Hyderabad. 
All Commissioners/Special Officers of Municipalities. 
All Recognized service Associations. 
The Director, Government Printing Press, A.P., Hyderabad for publication in the A.P. Gazette. 
Copy to the General Administration (Cabinet) Department. 
Copy to the General Administration (SW) Department. 
Copy to SF/SCs.                  

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