Rule 39 - Leave Encashment & Suspension

39. Leave/Cash payment in lieu of leave beyond the date of retirement, compulsory retirement or quitting of service

(1) No leave shall be granted to a Government servant beyond-

(a) the date of his retirement, or

(b) the date of his final cessation of duties, or

(c) the date on which he retires by giving notice to Government or he is retired by Government by giving him notice or pay and allowances in lieu of such notice, in accordance with the terms and conditions of his service, or

(d) the date of his resignation from service.

(2)

(a) Where a Government servant retires on attaining the normal age prescribed for retirement under the terms and conditions governing his service, the authority competent to grant leave shall, suo motu, issue an order granting cash equivalent of leave salary for both earned leave and half pay leave, if any, at the credit of the Government servant on the date of his retirement subject to a maximum of 300 days;

(b) The cash equivalent of leave salary under Clause

(a) shall be calculated as follows and shall be payable in one lumpsum as a one- time settlement,—

Cash payment in lieu of half pay leave component = Half pay leave salary admissible on the date of retirement plus Dearness Allowance admissible on that date X Number 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 30

NOTE.— The overall limit for encashment of leave including both earned leave and half pay leave shall not exceed 300 days.

(c) To make up the shortfall in earned leave, no commutation of half pay leave shall be permissible.] (DOPT Notification No. 11012/1/2009- Estt. (L), dated 01.12.2009)

(3) The authority competent to grant leave may withhold whole or part of cash equivalent of earned leave in the case of a Government servant who retires from service on attaining the age of retirement while under suspension or while disciplinary or criminal proceedings are pending against him, if in the view of such authority there is a possibility of some money becoming recoverable from him on conclusion of the proceedings against him on conclusion of the proceedings, he will become eligible to the amount so withheld after adjustment of Government dues, if any. (DOPT Notification No. 14028/6/81 -Estt. (L), dated 17.10.1983)

(4)

(a) Where the service of a Government servant has been extended, in the interest of public service beyond the date of his retirement, he may be granted—

(i) during the period of extension, any earned leave due in respect of the period of such extension plus the earned leave which was at his credit on the date of his retirement subject to a maximum of 180 days / 300 days as the case may be, as prescribed in Rule 26. (DOPT Notification No. 14028/9/80 -Estt. (L), dated 01.10.1981) (DOPT Notification No. 11014/3/89-Estt.(L) dated 02.05.1991)

(ii) after expiry of the period of extension, cash equivalent in the manner provided in Clause

(b) of sub-rule (2) in respect of both earned leave and half pay leave at credit on the date of retirement, plus the earned leave and half pay leave earned during the period of extension reduced by the earned leave and half pay leave availed of during such period, subject to a maximum of 300 days.] (DOPT Notification No. 11012/1/2009-Estt. (L), dated 01.12.2009)

(b) The cash equivalent payable under sub-clause

(ii) of Clause

(a) of this subrule shall be calculated in the manner indicated in Clause

(b) of sub-rule (2) above

(5) A Government servant who retires or is retired from service in the manner mentioned in Clause

(c) of sub-rule (1), may be granted suo motu, by the authority competent to grant leave, cash equivalent of the leave salary in respect of both earned leave and half pay leave at his credit subject to a maximum of 300 days. The cash equivalent payable shall be the same as in sub-rule (2) of Rule 39.] (DOPT Notification No. 1101211/2009-Estt. (L), dated 01.12.2009)

(5-A) deleted. (DOPT Notification no.14028/18/86-Estt.(L) dated 23.03.1988) (DOPTNotification 14028/1/2004-Estt.(Leave) dated 13.02.2006)

(6)(a)

(i) where the services of a Government servant are terminated by notice or by payment of pay and allowances in lieu of notice or otherwise in accordance with the terms and conditions of his appointment, he may be granted, suo motu, by the authority competent to grant leave, cash equivalent in respect of both earned leave and half pay leave at his credit on the date on which he ceases to be in service subject to a maximum of 300 days and the cash equivalent payable shall be the same as in sub-rule (2) of Rule 39]. (DOPT Notification No. 11012/l/2009-Estt. (L), dated 01.12.2009)

(ii) If a Government servant resigns or quits service, he may be granted, suo motu, by the authority competent to grant leave, cash equivalent in respect of earned leave at his credit on the date of cessation of service, to the extent of half of such leave at his credit, subject to a maximum of 150 days. (DOPT Notification No. 14028/9/80 -Estt. (L), dated 01.10.1981) ("120 days substituted with 150 days" vide DOPT Notification No. 13026/1/99- Estt. (L), dated 18.04.2002)

(iii) A Government servant, who is re-employed after retirement may, on termination of his re-employment, be granted, suo motu, by an authority competent to grant leave, cash equivalent in respect of both earned leave and half pay leave at his credit on the date of termination of reemployment subject to a maximum of 300 days including the period for which encashment was allowed at the time of retirement and the cash equivalent payable shall be the same as in sub-rule (2) of Rule 39. (DOPT Notification No. 11012/l/2009-Estt. (L), dated 01.12.2009)

(b) The cash equivalent payable under Clause

(a) shall be calculated in the manner indicated in Clause

(b) of sub-rule (2) and for the purpose of computation of cash equivalent under sub-clause

(iii) of Clause (a), the pay on the date of the termination of re-employment shall be the pay fixed in the scale of post of re-employment before adjustment of pension and pension equivalent of other retirement benefits, and the Dearness Allowance appropriate to that pay. (DOPT Notification No. 14028/6/82 -Estt.(L) dated 31.05.1985)

39-A. Cash equivalent of leave salary in case of death in service In case a Government servant dies while in service, the cash equivalent of leave salary for both earned leave and half pay leave, if any, at the credit of the deceased Government servant on the date of his death, not exceeding 300 days shall be paid to his family in the manner specified in Rule 39-C and the cash equivalent payable shall be the same as in sub-rule (2) of Rule 39.

NOTE.- In addition to the cash equivalent of leave salary admissible under this rule, the family of the deceased Government servant shall also be entitled to payment of Dearness Allowance only as per orders issued in this behalf separately.

(Notification No. F. No. 11012/1/2009-Estt. (L), dated the 1st December, 2009) 39-B. Cash equivalent of leave salary in case of invalidation from service

completely and permanently incapacitated for further service may be granted, suo motu, by the authority competent to grant leave, cash equivalent of leave salary in respect of both earned leave and half pay leave, if any, at the credit of the Government servant on the date of invalidation from service, subject to a maximum of 300 days and the cash equivalent payable shall be the same as in sub-rule (2) of Rule 39.

(2) A Government servant not in permanent employ or quasi permanent employ shall not, however, be granted cash equivalent of leave salary in respect of half pay leave standing at his credit on the date of his invalidation from service. [DOPT Notification No. 11012/1/2009-Estt. (L), dated 01.12.2009]

39-C. Payment of cash equivalent of leave salary in case of death, etc., of Government servant

In the event of the death of a Government servant while in service or after retirement or after final cessation of duties but before actual receipt of its cash equivalent of leave salary payable under Rules 39,39-A and 39-B, such amount shall be payable- (DOPT Notification No. 14028/1/81-Estt.(L) dated 19.07.1984)

(i) to the widow, and if there are more widows than one, to the eldest surviving widow if the deceased was a male Government servant, or to the husband, if the deceased was a female Government servant;

EXPLANATION.- The expression ―eldest surviving widow‖ shall be construed with reference to the seniority according to the date of the marriage of the surviving widows and not with reference to their ages;

(ii) failing a widow or husband, as the case may be, to the eldest surviving son; or an adopted son;

(iii) failing

(i) and

(ii) above, to the eldest surviving unmarried daughter;

(iv) failing

(i) to

(iii) above, to the eldest surviving widowed daughter;

(v) failing

(i) to

(iv) above, to the father;

(vi) failing

(i) to

(v) above, to the mother;

(vii) failing

(i) to

(vi) above, to the eldest surviving married daughter; (DOPT Notification No. 11012/I/2009-Estt. (L), dated 01.12.2009)

(viii) failing

(i) to

(vii) above, to the eldest surviving brother below the age of eighteen years;

(ix) failing

(i) to

(viii) above, to the eldest surviving unmarried sister;

(x) failing

(i) to

(ix) above, to the eldest surviving widowed sister;

(xi) failing

(i) to

(x) above, to the eldest child of the eldest predeceased son.

39-D. Cash equivalent of leave salary in case of permanent absorption in Public Sector Undertaking/Autonomous Body wholly or substantially owned or controlled by the Central/State Government (DOPT Notification No. 13026/2/90-Estt. (L), dated 22.10.1990)

A Government servant who has been permitted to be absorbed in a service or post in or under a Corporation or Company wholly or substantially owned or controlled by the Central Government or State Government or in or under a body controlled or financed by one or more than one such Government shall be granted suo motu by the authority competent to grant leave cash equivalent of leave salary in respect of earned leave at his credit on the date of absorption subject to a maximum of 300 days. This will be calculated in the same manner as indicated in Clause

(b) of sub-rule (2) of Rule 39.

(DOPT Notification No. 13026/2/90-Estt.(L), dated 20.04.1993) NOTE.— The expression 'permanent absorption' used in Rule 39-D shall mean the appointment of a Government servant in a Public Sector Undertaking or an Autonomous Body, for which he had applied through proper channel and resigns from the Government service to take up that appointment.

(DOPT Notification No. 13026/3/2011-Estt.(L), dated 28.03.2012)

What This Means

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

• 1Applies to retiring government servants under suspension or facing disciplinary/criminal proceedings.
• 2The leave granting authority can withhold the cash equivalent of earned leave.
• 3Withholding is based on the possibility of recovering money from the employee after the proceedings conclude.
• 4The withheld amount is released after adjusting any government dues, if the proceedings conclude in a way that money is owed.
• 5DOPT Notification No. 14028/6/81 -Estt. (L), dated 17.10.1983, provides the legal basis for this rule.

Practical Example

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Cross References

Frequently Asked Questions

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.