Difference between LPR and Leave Encashment

Many of the employees even don’t know the difference between LPR and Leave Encashment and they asked me about the same by sending me emails and by the comment. It is fact when an employee enters into Govt service he/she is not aware of many terms of job service and service rules. Do you know the difference between the said terms? If you know the difference it is great and if you not know the same today I will explain you the difference between the two with detail.

LPR & Leave Encashment

LPR and Leave Encashment are both the types of retirement options. LPR means leave preparatory to retirement and leave Encashment is the amount that is paid to the employee in return of the leaves in his/her credit at the time of retirement. In LPR the employee enjoys leaves instead of cash amount of Leaves while in Leave Encashment the employee enjoys the payment instead of availing leaves.

When an Employee can avail LPR and Leave Encashment?

A government servant can avail LPR after a continuous service of at least 25 years while he/she can avail Leave Encashment after a continuous service of at least 30 years. When an employee retires on the basis of Medical Basis he/she will also get the Leave Encashment of his/her leaves in credit. In this case at least nine and half years service is compulsory. The same is in the case of death during service.  Most of the employees prefer to retire at the age of 60 years on attaining the age of superannuation as they see they have no alternative source of income for them and their family.

Benefits of LPR and Leave Encashment

During LPR a government servant is on leave before his/her retirement. Suppose a government servant has 265 days leave in credit then after availing the leaves of 265 he will be retire from Govt service. He/she avails about all the pay and allowances except conveyance allowance during the period of LPR while in the case of Leave Encashment the employee serves the department till the date of retirement. The government servant gets all the pay and allowances as well as the payment in return of leaves in the credit. This payment depends on the number of leaves in his/her credit. Suppose the basic pay of an employee is 30,000 and he/she has 210 days leaves in the credit then he/she will get about Rs. 210,000/- as Leave Encashment.

I have discussed the major points on the said topic and it is on you that which benefit you want to avail.



  1. waqas shaikh says:

    dear maam,

    can you please tell if a government servant avails earned leave in his last year of service for 10 days, will be entitled to leave encashment

    best regards

    waqas shaikh


  2. Nawaz Ali says:

    Madam Assalam u Alaikum!
    I have completed 24 Years service at HEC Department in BPS-16. I wanted to avail early retirement Please guide me, Obliged

  3. Nawaz Ali says:

    Mary Service 24 Sal ho gai hay HEC may. may grade 16 may hon, key may 1 sal ke LPR lay sakta hon. and key LPR part of service hote hay?
    Nawaz Ali

  4. Nazar Hussain Kazmi says:

    Can a government servant can do job in another govt. department during his/her LPR?

  5. Muhammad Farooq says:

    I have got voluntary/premature retirement after completion of 34 years federal government service. Notification issued for my retirement. I did not applied/got any retirement benefit. ie leave encasement, GP fund, Pension now I want to withdraw my premature retirement. when my retirement mature. please help me in this connection. I have applied for withdraw of my premature retirement with in 365 days of my retirement.

  6. Muhammad Akhtar says:

    I completed my service 30 years and my age is 55 years. kia main LPR lay sakta hon?

  7. Kashif Iqbal says:

    Dear Mam. As you told that suppose the basic pay of an employees is Rs.30,000/= and he/she has 210 days leave in the credit then he/she will get about Rs.210,000/= as Encashment. He/She basic pay is Rs.30,000/= not 10,000/=. please clarify.


  8. yaseenrathore says:

    madam assalam alaikum mere cousin 31 December 2016 ko retire ho rahe hen 1991 men woh study leave par B.Ed karne gae the .as waqt un ko half pay mil rahe thi un ki study leave 241 bani thi .ab LPR 365 days ki lena chahte hen office wale kah rahe hen k LPR men se study 241 days kam hon ge yani 365 day ki LPR bane gi plze aap guide karen k kitne din ki pay bane gi

  9. Munir Zaidi says:

    Dear sir
    Mary Service 24 Sal ho gai hay HEC may. may grade 16 may hon, key may 1 sal ke LPR lay sakta hon. and key LPR part of service hote hay?

    Munir Zaidi

  10. Azeem Mughal says:

    and kindly help me how to calculate credit leaves , while the length of service is 26 years

  11. Azeem Mughal says:

    sir kindly help me, ager kisi ki total service 26 years hain, and due to 60years of age wo retire horha hai, and service book me total leave 92days entry ki hue hai, to usky lpr days (260-92days) hogi ya (360-92days) credit leaves hongi. kindly reply

  12. ayaan says:

    Salam.mam my mOm is 16 scale and qualifying service 25 is she ia able for leave encashment now at the time of retirement may she will get payment at the time of retirement aftr qualifying 25 yrs service

  13. Abdul Rehman says:

    (1) 28 Saal Service Main Agr Before Time Retirement Lena Chahye Toh Usko Leave Encashment Milega?
    (2) Kya Ad Hoc Period Ko Pension Purpose K Liye Service Main Count Kia Jayega?

  14. akram says:

    aoa . dear sir .. jo admi 60 saal ki omer me 19 saal service k bad retire hota hy ..( mean remployed ) os ko encashmnt mily gi...? pl no leave during 19 yrs service .


    dear Madam,
    I want to discuss that a Pb. Govt.Employee cancelled LPR during his period and joining his duty.Please clarify that what rules implement on this purpose.

    • Dear Syed Nasir Ali Shah, I could not understood ur question plz email me all with full detail.

      • SYED ANSIR ALI SHAH says:

        Dear Madam.


        My question is that I am now BS.16, in Education Department, and from Oct,13 to Oct,14 I am on LPR. My service is now 30 Years, and age 50 years, during my posting in other districts I have decided that the service will be closed I have applied LPR, now the LPR period is going to ending time, please suggest that the LPR is cancelled in this time and i am continuous my service other than my basic pay is 22000/- please calculate my pen/com.

  16. amin uddin says:

    is the lpr encashment means that a govt employ receive the salary of 365 days at a time ofter retirement....

    • Dear Amin LPR means not the payment. LPR means the Employee will enjoy the leaves that he has in his credit with all pay and allowances except Conveyance Allowance.

  17. Mahtab says:

    This is employee rights or management decission who can LPR given or not?

  18. Hafiz Kashif says:

    Dear Amjad!
    please visit federal finance ministry's website for grant of premature increment on selection grade for Federal Govt. Employees

  19. Hakeem Zafar Iqbal says:

    The previous Government announced 20% Special Allowance to the federal employees of Ministries/Division's only. But the employees of departments have been deprived.Why?
    I would like to ask,whether the employees of departments are not federal Government employees?

  20. muhammad Q. khan says:

    respected mam.
    in any one is re-employed and gets retirement on attaining the age of superanuation but the pensionable service in only 7 and half years. i want to know whether the earned leave for seven years can be en cashed or not please tell me the rule if exists.

  21. Suhail Shoukat says:

    as per formula of calculation of leave encashment, in the said case, if BP=30000 and leave in his credit are 210 days then the amount will be 207123/- instead of 210000/-
    kindly correct it.

    leave encashment=30000*210/365*12

    kindly note it. this clarification is issued by accountant general punjab lahore.

    Suhail Shoukat
    Deputy Accountant (PIPFA Qualified)

  22. Awan says:

    IMPORTANT CORRECTION PLEASE....As per the new amendment in leave rules, the leave encashment is extended to 360 days NOT for 180 days..Thanks

  23. KAMRAN ABID says:

    You have said that Leave encashment is paid for total earned leave credited in Leave account but it is not true. If a govt servant has 400 days leave, then he will get leave encxashment for 200 days, that is half of total leave.
    Please explain

  24. Ijaz Rashid says:

    Has there been a 20% increase in the basis pay for the Civil Servants in Khyber Pukhtunkhwa? Could you please paste the notification here.

  25. khanakhtara says:

    LPR means Leave Preparatory to retirement and leave priority to retirement.

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