Difference between LPR and Leave Encashment

Last Updated on October 31, 2021 by

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.

 

128 Comments

  1. Zulfiqar

    Assalamoalikum Sir,

    My cousin was working in education department as SST (Senior Science Teacher) BS-16 recently died after serving 5 years & 4 months
    how would calculate the LPR of 5.4 years service?

  2. Rashid Hameed

    Can an employee apply for Leave Preparatory to Retirement at completion of 24 years of service?

  3. Muhammad Yaseen

    What is meant by Premature increment?

  4. Amjad Shah

    Dear sir please confirm it a a government servant has 50 days leave in his credit, can he takes LPR whereas he has completed his service is 27 years

      • Rauf Ahmad

        اسلام علیکم ۔
        میری فیڈرل گورنمنٹ سروس 35, سال مکمل ہو چکی ہے اور 24/3/2024 کو عمر 56 سال ہو جائے گی اور 2 ہزار سے زائد چھٹی کریڈٹ ہے۔
        میرا سوال یہ ہے کہ کیا سال کی انکیشمیٹ لینے کے لئے مجھے سروس بھی پورا سال کرنا پڑے گی یا شارٹ نوٹس پر بھی سال کی انکیشمیٹ لے سکتا ہوں۔
        براہ کرم راہنمائی فرمائیں

        • 31 years service kay baad further service complete ki zaroorat nahin hoti leave encashment kay liay.

  5. HASSAN ANSIR

    AOA DEAR TEAM,
    PLZ GUIDE ME….AGR KOE EMPLOYEE LPR PER HO 11 MONTHS KI LPR CREDIT HON OR US KI AIK MONTH BAD DEATH HO JAIY TU KIYA OS K WARISON KO BAQI KI PAYMENT HO GE…….ENCASHMENT KI SORAT ME

    • Agha Amir

      Dear Hasan Ansir

      A government servant who dies during service is considered to have retired on medical grounds from the date of death. So in my opinion the LPR stands cancelled and instead pension starts from the date of death.

      Agha Amir
      0300 9800246
      [email protected]

    • Mohsin Awan

      Yes surely. The heirs would get leave encashment for remaining period.

    • Mohsin Awan

      Surely, family of deceased employee, who is on LPR and dies during LPR, his family shall be entitled for encashment for the remaining period of 365 days according to rule 17(5) of Punjab revised leave rules 1981. Crystal clear.

  6. Nasrullah khan Bajwa

    Respected Sir,can a govrt servant avail LPR on 12 years of service,while my retirement age is 60 years.
    Joining date :14/10/2009
    Retiring date: 31/12/2021
    Remaining leaves:540

    • Mohsin Awan

      Yes he can avail LPR but only for 50 days after which he will get retire from his service. Also, according to an amendment, he must have attained age of 55 years when he applies for LPR (along with his 27 years of service as you described)

    • Mohsin Awan

      yes you can avail LPR on service of 12 years as you are going to retire on superannuation.

  7. Amber

    Which type of leave can be taken at the time of resigned for full and final settlement ?

  8. Prashant

    I am retiring on 31/08/20 and i have 600 days of leave remaining as of today. Can I avail for LPR ?
    I have completed 28 yrs of continuous govt service.
    Will i get leave encashment of remaining leave if i apply for 109 days LPR i.e till 30/08/20 from today So, will i get 600-109=491 days left. So will i get 300 days leave encashment or not?

  9. Aizaz Kazmi

    I was in need of some information regarding leaves in last year of service. My retirement is due on 30th May 2020 and I have availed leave enchasment.
    Now the question is that can I avail 15 days ex pakistan leave before my retirement i.e. am I entitled to avail earned leaves in last year of service
    Regards

  10. Salman

    Aslamo Aliekum Madam!
    If an employee at his credit 221leave and 15 months remaining in the age 60 and want to get LPR and after 1 year LPR he can get leave encashment benefit or not.?
    Thanks

  11. Umair Qamar Jokhio

    I am Sindh govt employee (BPS-16) reaching age 59 years & served 34.5 years
    I want to avail the LPR but did not applied, only 13.5 months remaining to my retirement period. Please advise me.

    • Adnan

      You should apply for LPR, If you have more leaves left than 13.5 months I think those will be en cashed.

  12. Muhammad Ali Soomro

    Kiya LPR main jo basic pay current ho us p saaree maraat denay chahiay.?

  13. Iftikhar Khan

    Sir
    I have been allowed 365 days Leave Encashment in my favour but I want to convert my Leave Enashment into LPR due to my personal reasons so can I convert it? and in which process I have to adopt ? Please reply me its urgent thanks

    • I think but not confirm that you can apply for the same if you have not yet draw the amount of encashment.

      • Iftikhar Khan

        I just availed 67 days Leave Encashment but no enashment has yet to drawn so can I apply for conversion rest of Leave Encashment into LPR from 9th March 2019 to 31.12.2019???? Please reply me urgently thanks

      • Iftikhar Khan

        I have spent only 67 days Leave Encashment but not yet draw any encashment so Can I apply conversion of rest of Leave encshment into LPR from 9th March 2019 to 31.12.2019 ? in which procedure i have to opted?

          • Iftikhar Khan

            Ok if I dont attend the office during my Leave Encashment period then Can I avail LPR without any departmental punishment? Please reply me urgently thanks

  14. Iftikhar Khan

    Sir I have allowed 365 days leave encashment in my favour before retirement but I want to convert my leave encashment into LPR so please clarify me Can it be possible and what kind of process I should be adopted? Please reply me its urgent.

  15. Javed Iqbal Farooqi

    Assalam O Alaikum.
    I am from Khyber Pakhtunkhwa. My total service is 29 years and 9 months. My regular date of retirement (at 60 years age) is on 13th April, 2023. I want to get early retirement and therefore want to avail my 365 days LPR in 2029 (580 days is my leave account). After availing my LPR, have I am Option to cancel my plan of early retirement and continue my job till my regular date of retirement (I.e. 13 th April 2023). Please guide me on this. Thanks

    • Dear Javed Iqbal Farooqi during the period of LPR or Leave Encashment, any employee can be back to his/her service. But after the retirement starts he cannot avail this opportunity.

  16. Niaz Shah

    Sir,

    Please advice is competent authority has power to refuse encashment of LPR of a federal government civil employee on superannuation?

    An early reply is requested, please.

  17. rahim pasha

    Dear Sir/Madam,

    what is the exact time period of availing LPR before retirement for sindh servants.
    as i am retiring on 03-01-2020 at age 60, when my LPR period will be started? is that 6 months or 1 year.
    i am continuing my duties during LPR

  18. Ahmad

    Hello every body please make it clear that a govt employee going to opt retiring pesion just after completing 26 year service will get 365 day leave encashment as per notification dated 1990 Fd Punjab.
    Ahmad

    • According to my knowledge Encashment is only due after 30 years service or 60 years of age. If he retiring at the age of 60 then service length is not compulsory.

      • Najma

        Hi! Can I take LPR on 25 years of retirement? I m serving KP government.

  19. Raza

    Dear madam if someone is medically unfit in military services and govt gives him option to avail LPR. If person avail LPR will he get service benefit till LPR ends? If yes con you mention its notification for the helps.

  20. Rana Usman

    if an employ going to for compulsory retirement, can he have benefit of leave encashment.

    • Khalid mahmood

      LPR & Leave encashment not admissible in case of compulsory retirement. It has been clarified by Federal Govt

      • Rasheed Ahmad

        Wether leave encasement is admissible in Directory retirement

  21. Tanveer Ahmad

    Dear sir. I’ll b of 60 years on 15-04-2020. But I want to take retirement on 31-03-2019. My total service at 31.03.18 will b 32 years and 10 months and 20 days. Will I get leave encashment on this premature retirement?

    • Dear Tanveer an employee can get encashment if his service is minimum 30 years or 60 years age.

  22. Shameer

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

  23. khalid Mahmood

    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.

  24. Ria khan

    How many maximum leaves a high school headmistress can alot to a teacher per month

    • Sarfraz

      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.

  25. shahid siddiqui

    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

    • shahid siddiqui

      If an employee completed 29 years service and going retirement on superannuation, he will entitle for for leave encashment or otherwise.

  26. Babar

    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 ?

  27. ALi akbar

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

  28. Arshad Saleem

    Respected sir/madam,

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

    • Khalid mahmood

      LPR and leave encashment are not admissible in case of clmpulsory retirement.

  29. Muhammad Zohaib

    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

  30. basheer

    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

  31. khurram

    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

    • Raza

      Peshawar High court Judgment on such case . Plz Search w.p-No.4208-p-2015.pdf

  32. Wasim Ajmal Khan

    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

  33. ahmed

    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

  34. Malik Shakeel Ahmed

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

  35. Ghulam hussain

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

  36. sajjad

    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

  37. dr pervaiz bin saeed

    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

  38. zulfiqar

    Can a govt servant avail LPR on 24 year of service?

  39. KALEEM

    DEAR MADAM,

    I AM ON LONG LEAVE. HOWEVER, I WANT TO GO ON LPR NOW. BEFORE HOW MANY DAYS I CAN APPLY FOR LPR . WHETHER , LPR ON 365 DAYS MAY BE DIVIDED ON LFP AND LHP AS I HAVE 265 DAYS LFP AT MY CREDIT. BUT I WANT TO AVAIL SERVICE BENEFIT UP TO 3RD JULY, 2018. IS THIS POSSIBLE.MEAN LFP AND LHP. BEFORE GOING ON LPR HOW MANY DAYS I HAVE ATTEND OFFICE

  40. Muzzafar

    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 ?

  41. waqas shaikh

    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.

  42. 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

  43. Nawaz Ali

    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?
    Regards
    Nawaz Ali

  44. Nazar Hussain Kazmi

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

  45. Muhammad Farooq

    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.

  46. Muhammad Akhtar

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

  47. Kashif Iqbal

    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.

    Thanx

    • 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.

    • Accounts officer

      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

  48. yaseenrathore

    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

  49. Munir Zaidi

    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?

    Regards
    Munir Zaidi

  50. Azeem Mughal

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

  51. Azeem Mughal

    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
    thanx

  52. ayaan

    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

  53. Abdul Rehman

    (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?

  54. akram

    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 .

  55. SYED ANSIR ALI SHAH

    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.
    thanks

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

      • SYED ANSIR ALI SHAH

        Dear Madam.

        Salam,

        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.
        thanks

        • ShumailaKamal

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

  56. amin uddin

    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.

  57. Mahtab

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

  58. Hafiz Kashif

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

  59. Hakeem Zafar Iqbal

    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?

  60. muhammad Q. khan

    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.

  61. Suhail Shoukat

    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)
    0332-4145869

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

  62. Awan

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

    • ShumailaKamal

      Dear Awan, for Punjab Govt Employees it is still 180 days.

  63. KAMRAN ABID

    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.

  64. Ijaz Rashid

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

  65. khanakhtara

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

      • Amjad

        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

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.