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.




    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.

  2. 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.

  3. Mahtab says:

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

  4. Hafiz Kashif says:

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

  5. 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?

  6. 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.

  7. 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)

  8. 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

  9. 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

    • Dear Kamran, I have mentioned the same for Federal Govt Employees. For Punjab Govt Employees it is half as you said but not exceeding to 180 days.

  10. 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.

  11. khanakhtara says:

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

    • Dear, Leave Preparatory to retirement.

      • Amjad says:

        Respected Madam!

        Is there any fresh notification for grant of premature increment on selection grade for Federal Govt Employees. If there is any, can u past it here. Your kind comments are also requested