Is it Mandatory For Govt Employees to Avail 20-day Earned Leave? Govt Issues Clarification

New Delhi: The Central government has refuted media reports and issued a clarification, saying it is not mandatory for permanent government employees to avail 20 days of earned leave every year. Also Read – 7th Pay Commission Latest News: Centre Relaxes Local Travel Reimbursement Rules For These Govt Employees | Check Details Here

“It is being claimed that the government has made it compulsory for its permanent employees to take at least 20 days of earned leave every year, instead of hoarding them up for encashment,” the statement from the government said. Also Read – 7th Pay Commission Latest News: Central Govt Employees Likely to Get Salary Hike From Next Year | Details Here

The clarification was issued after media reports suggested that the Centre has introduced a new leave encasement policy making all central government employees to take at least 20 days of earned leave every year. The reports further also had suggested that the move has been taken to prevent workers from hoarding leaves in order to get them encashed later and to promote healthy work-life balance for employees. Also Read – Lakshmi Vilas Bank Put Under Moratorium, Withdrawal Limited to Rs25000

The fact-checking arm of the government’s information wing Press Information Bureau (PIB) has issued the clarification about the reports.

In October last year, the Centre had announced an LTC cash voucher scheme for its employees. By opting for this scheme, the eligible employees can purchase goods and services in lieu of the tax-exempt portion of the Leave Travel Concession/Leave Travel Allowance (LTA/LTC). Moreover, they also claim tax-exemption on the travel fare encashed if the amount is spent by satisfying specified conditions.

However, the Centre, later extended the Income Tax benefit on the LTC Cash Voucher scheme to the non-Central Government Employees, which includes private-sector workers as well.

Issuing a statement, the Ministry of Finance said that the government LTC is different from the Leave Travel Allowance in the corporate sector. “A person claiming LTC is not eligible unless he actually travels; if he fails to travel the amount is deducted from his pay and he may be liable for disciplinary action. He does not have the option of keeping the money and paying income tax,” the finance ministry said.