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.


View Comments (67)

      • 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

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

  • 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.

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

  • 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)

    • Dear Sohail I just gave an example and i written there that it is estimated amount not exact. Thanks

  • 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.

  • 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?

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

  • dear...
    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.

  • 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.

      • 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.

        • Dear Syed Ansir ALi Shah, according to the rules u cannot now join the duty again. Thanks

  • 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 .

  • (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?

  • 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

  • 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

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

  • 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

  • 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

  • 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.


    • kashif 210 days are approx 7 months. So 7 multiply by 30,000=?
      Basic bhai daily to nhe milti na?. ya per month hay. Hope u will understand

    • Dear Kashif Iqbal, the employee will get the leave encashment of the months in his credit. You can convert the days into months and then multiply with basic pay.

  • 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.

  • 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

  • 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

  • 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


    • Dear waqas shaikh, leave encashment is only eligible at the age of 60 or minimum 30 years service in normal cases.

  • Dear Galxy World mene 29.7 years service pe retirement di he or mene 61 Chuttian ki hein or leave encashment per MONTH kitni hoti hein Example: 12 or 10 According to Sindh government ?



  • i am in continuous service for over 32 years and am presently in bps 20..ihve more than 365 days of leave in my credit,can i avail lpr in my 60th year of sevice and will i also be eligable for leave encashment of 365 days

  • Respected Madam,
    one employee death during service his service only 13 years, what his wife received benefit of LPR which are leave in balance 256 please communicated as soon as possible

  • kindly clarify what is the federal Govt rule for payment of encashment during death in service please sent me the said rule

  • Respected Sir, can a Government Servant avail LPR on 24 years of service ?

  • dear mam. i would like to clarify that leave encashment will due after completing 26 year regular service as per Est code. can u please comment on it. Naeem

  • Aslamo Aliekum Madam!
    If an employee at his credit 210 earn leave and in last 15 months he is regular and will be retired at the age of superannuation, can he also earn leave 04 nos of days in a calendar month. will his leave will accumulated from 210 earn leave to 270 and will get leave encashment of 270 days. is there any provision in leave rules. because i have not seen any rule in the leave rule. thanks

  • dear madam if someone is medically unfit in military services and govt gives him option to avail LPR. if that person avail LPR will he get service benefit till LPR ends? if yes can you mention its notification for the help

  • sir my father is retairing from job he got leaves 365 and his service is 38 years. his basic pay is 21310 can you calculate lpr my father

  • dear
    can any one retire on 5 july 2017 on superannuation and get LPR encash
    my question is that on revision of pay scales his basic salary revised wheather he is eligible for difference of arrear or not

  • Respected sir/madam,

    Please clarify me about the admissibility of Leave Encashment during compulsory retirement from service.
    Thanks in advance

  • Can a govt department refused to a govt employee from retirement after completion of 25 year's service

  • I am doing job in a Private FMCG company, i want to know if an employee promoted , will he not be illegible for leave encashment.? as well as increment ?

  • if an employees completed 28 years service but he has retired in 2017 on medical grounds
    while his superannuation retirement will due in 2021. about 200 leave in his credit he will entitles for encashment or not

    • Under Punjab Revised Leave Rules 1981, the competent authority may grant up to 10-days casual leave to an official in ordinary cases and up to 15-days in special circumstances. As far as I have knowledge of rules of Education Department, Headmistress is not competent authority. She is head of the school having supervisory role, and may grant 02 to 06 days casual leave at a time to her subordinates.

  • On superannuation, leave encashment is granted irrespective of the fact how many years of service has been rendered by the retiring person in KP. Secondly, in Khyber Pakhtunkhwa, Leave Encashment is granted after 26 years of service in case he a one wants to retire before superannuation and there is no mention of required service length for this in the KP Revised Leave Rules 1981. As qualifying service for pension is 25 years in KP, 26 years of service is mandatory for Leave Encashment.Astonishgly, in Pension Rules, Qualifying service for pension is 25 years in KP but 20 years in KP Civil Servants Act 1973.

  • Dear Sir
    Can Leave Encashment on Retirement can be refused and official directed to avail LPR.