Leave Encashment and Earned Leave (EL) Ceilings
Core Principle/Rule: Earned Leave is statutory leave that accumulates over an employee’s service period up to a strict administrative ceiling, and its cash equivalent can be claimed at retirement.
Key Facts:
- Credit Rate: 15 days of EL are credited in advance on 1 January and 1 July each year, totalling 30 days annually.
- Accumulation Ceiling: The maximum EL that may be accumulated is 300 days.
- Encashment Limit: Maximum leave encashment allowed at retirement is also strictly capped at 300 days.
- The 300+15 Rule: If an employee already has 300 days at the end of a half-year, the next 15-day advance credit is kept in a separate account for that half-year. This permits leave during that half-year without instantly losing the advance credit.