About EEL (Encashment of Earned Leaves) in Govt. of AP

Exclusive on EEL

(ENCASHMENT OF EARNED LEAVES)

First of all you need to know about ANDHRA PRADESH REORGANIZATION ACT 2014; Dt: 01-03-2014.

02 June 2014

Andhra Pradesh Re-organisation Act, 2014 for bifurcation of Andhra Pradesh received the President's assent on 01 March 2014. The ''appointed day'' for the new States' formation is 02 June 2014.

Study Ref: 
1. G.O.Ms.No.232, Fin (Fri) Dept Dt: 16-09-2005.

2. G.O.Ms.No.154, Fin (Fri) Dept Dt: 04-05-2010.
3. Cir.Memo No: 196330-C/86/A2/HRM.V/2016 Dt: 17-10-2016 of the govt. of AndhraPradesh Finance (HR. V) Department.

So, You need to prepare Two (02) bills before and after the appointed day (i.e., 02-Jun-2014) in following HOA (Head Of Accounts).

Before the appointed day (i.e., before 02-Jun-2014)

Major Head              2071   -      Pension and other retirement benefits

Sub Major Head       01       -      Civil

Minor Head              115     -      Leave encashment benefits

Sub Head                14       -     Amount allocable to successor states of AP & TS

Detailed Head          001     -     EEL for State Govt. Employees

After the appointed day (i.e., after 02-Jun-2014)

Major Head              2071   -      Pension and other retirement benefits

Sub Major Head       01       -      Civil

Minor Head              115     -      Leave encashment benefits

Sub Head                24       -     Amount allocable to successor states of AP

Detailed Head          001     -     EEL for State Govt. Employees

(The bills are to be submitted through CFMS only)

EXAMPLE:

Q1: An employee named Sri. V.P. APPALA NAIDU, SGT, GTWA SCHOOL, PADERU has been retired from services on Dt: 02-10-2019. He got 650 days of HPLs (HALF PAY LEAVES) and 49 days of Els (EARNED LEAVES) credit in his account as on his retirement. How can you calculate the Encashment of Earned leave (EEL) and pay to the individual?

Solution:

[Note: EL value is more than HPL (EL is full Pay and HPL is half pay)]

So, claim Els first and HPL later

Rule as per the references study above; the encashment of ELs + HPLs put together should not exceed to 300 days for final payment.

First you need to note the following:

1.    1. Salary Particulars (i.e., Pay, DA, HRA and AHRA only);

Note: IR, SCA, CCA like compensatory allowances etc., are not admissible.

2.    2. Update the SR (Service Register).

Consider his pay and other details are as follows;

Basic Pay = 63010-00

DA @ 27.248% = 17169-00

HRA @ 12% = 7561-00

AHRA @ 8% = 2000-00 (Note: AHRA pay maximum is Rs. 2000/- only)

Date of retirement is Dt: 02-10-2019.

Balance of Els at his credit is 49 days.

Balance of HPLs at his credit is 650 days.

A)  After the appointed day (i.e., after 02-Jun-2014) bill preparation:

So, Calculate Els from the appointed day (i.e., 02-Jun-2014) to the date of retirement (i.e., 02-Oct-2019)

Which is 5 years 4 months 0 days (Ref link)

Generally, he is a teacher (vacation department); so, he gets 06 days of Earned Leaves after completion of a calendar year (12 months) and 03 days Earned Leaves after completion of calendar Half year (06 months).

So,

Yearly 06 days of EL…., i.e., 05 (Years) X 06 (Els) = 30 Earned Leaves

The remaining 04 months will not be calculated (reason: Compulsorily should complete 06 months for earning 03 days of earned leaves)

Now, the calculation as shown below;

30 days salary (As usual as regular)

Basic Pay = 63010-00

DA @ 27.248% = 17169-00

HRA @ 12% = 7561-00

AHRA @ 8% = 2000-00 (Note: AHRA pay maximum is Rs. 2000/- only)

Gross = 89,740-00 is drawn.

B) Before the appointed day (i.e., before 02-Jun-2014) bill preparation:

Balance of Els at his credit after the above bill is 19 days (49 – 30 = 19 days)

Balance of HPLs at his credit is 650 days.

19 days salary

Basic Pay = 39906-00 [(63010/30)X19=39906.3]

DA @ 27.248% = 10874-00 [(17169/30)X19=10873.7]

HRA @ 12% = 4789-00 [(7561/30)X19=4788.6]

AHRA @ 8% = 1267-00 [(2000/30)X19=1266.6]

i)             Gross = 56,836-00 is drawn.

Now, HPL encashment

Formula

= (Half Basic Pay + Half DA) X HPLs

                              30

[Note: Balance HPLs are 650 days; but, in the encashment of this bill HPLs + Els put together should not exceed to 300 days. So, Els are 49 days and HPLs are 251 days (i.e., 300 – 49 = 251 days)]

Therefore,

= (31505 + 8585) X 251

                     30

ii)            Gross = 3,35,420-00 is drawn

Therefore, (i + ii)

= 56836 + 335420

= 3,92,256-00 is drawn.

GRAND TOTAL

A+B (After the appointed day bill + Before the appointed day bill)

Total Rs. 89,740-00 + Rs. 3,92,256-00

Therefore, Rs. 4,81,996-00 is drawn and paid towards the EEL (ENCASHMENT OF EARNED LEAVE) bill.

😊 It’s that simple 😊 (Find bill reference here)

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