Encashment of Leave to Industrial employees
DOPT has decided to provide encashment of Leave to industrial employees of Ministries / Department other than Railways (Earned Leave and Half Pay Leave). Encashment of Earned Leave and Half Pay Leave is already allowed in respect of Central Government Employees.
Industrial employees shall be entitled to encash both Earned Leave and Half Pay leave, subject to overall limit of 300 days. Cash equivalent payable for Earned Leave shall continue unchanged. However, cash equivalent payable for half Pay Leave shall be equal to leave salary admissible for Half Pay Leave plus Dearness Allowance admissible on the leave salary without any reduction being made on account of pension and pension equivalent of other retirement benefit payable. To make up for the short fall in Earned Leave, no commutation of Half Leave shall be allowed.
The full text of this Office Memorandum dated 28.12.2012 is given below