Encashment with LTC
DoPT instructions allow encashment of up to 10 days of Earned Leave at the time of availing LTC, subject to the prescribed conditions.
Career limit for LTC encashment
The overall ceiling for leave encashment linked to LTC is 60 days during the employee's entire service.
Retirement encashment
Under the CCS Leave framework and related Government orders, cash equivalent of leave salary at retirement is subject to the applicable ceiling, commonly up to 300 days for eligible leave balances under the rules.
LTC encashment is separate from retirement ceiling
Government instructions clarify that leave encashed in connection with LTC is not deducted from the maximum leave encashment otherwise admissible at retirement, subject to the governing rules.
Request before journey
Where LTC leave encashment is claimed, submit the request before commencement of the journey as required by the procedural instructions.
Even where fare claim is nil
DoPT has clarified that LTC leave encashment should not automatically be denied merely because fare reimbursement is nil in certain permitted circumstances, provided the employee gave prior LTC intimation, had leave sanctioned, requested encashment before travel and gives the required self-declaration.
Check your Earned Leave balance
Encashment requires sufficient admissible leave. Verify the official leave account before applying.
Tax and payroll treatment
Actual tax treatment and payroll recovery/adjustment depend on applicable tax rules and the employee's case. Tax treatment depends on current tax rules and the individual case; confirm it before filing.
Related guides
LTC & Leave Hub · Fresh Recruit LTC · LTC Advance & Claim · Half Pay & Commuted Leave · Leave Encashment
Official sources
- DoPT Annual Report 2022–23 – LTC encashment procedural clarification
- DoPT – CCS (Leave) Rules / Acts & Rules
Source review: 10 September 2026.