Earned Leave Encashment Rules

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Questions and Answers

What is the maximum lodging reimbursement for a Deputy Manager staying in a Major City?

2900 (correct)

2000

4100

1500

What is the reimbursement limit for Class IV employees staying in Area I?

1200

1050 (correct)

1000

800

How many days of Earned Leave can confirmed employees encash at a time?

15 days (correct)

5 days

10 days

30 days

Which of the following expenses can be reimbursed in addition to lodging charges?

Surcharges Signup and view all the answers

What is NOT included in the salary computation for Earned Leave encashment?

Overtime Pay Signup and view all the answers

How much can a Class III employee claim for lodging in Other Places?

800 Signup and view all the answers

What percentage of the Halting Allowance is admissible for a period not exceeding 6 hours?

30% Signup and view all the answers

Which condition leads to receiving the full Halting Allowance when an officer is accommodated in a guest house?

Company accommodation. Signup and view all the answers

For how long is the block year for encashment of Earned Leave defined?

Two calendar years Signup and view all the answers

If an employee is charged lodging for 2 days despite staying less than 24 hours, how should the reimbursement be calculated?

Actual lodging expenses for 2 days Signup and view all the answers

If an officer receives both free boarding and lodging, what is the admissible Halting Allowance?

25% Signup and view all the answers

When is the HRA considered for the calculation of salary for encashment?

When the employee is drawing HRA on the date of the application for encashment Signup and view all the answers

In which category do cities like Pune and Nagpur fall?

Area I Signup and view all the answers

What factor determines the salary calculation for encashment of Earned Leave?

The salary the employee was drawing on the date of application Signup and view all the answers

What happens to the lodging reimbursement if the bill includes tips?

Not allowed for reimbursement Signup and view all the answers

What happens to the Halting Allowance when an officer stays in a hotel?

It is reduced by Rs. 10 per day. Signup and view all the answers

What are India-based officers posted abroad entitled to regarding Leave Encashment?

Encashment only during their time in India on leave Signup and view all the answers

Which of the following is NOT included in the maximum lodging charges reimbursement?

Lodging Charges Signup and view all the answers

When is the scheduled time of departure used to determine the commencement of a tour?

When the departure is delayed. Signup and view all the answers

What percentage of the Halting Allowance is allowed if free boarding is provided at the place of halt?

50% Signup and view all the answers

What does the term 'Tour' refer to in the context provided?

A journey beyond 8 km from the outer municipal limits of the headquarters Signup and view all the answers

Which allowance is explicitly noted as not being contributed to the encashment amount?

Provident Fund Signup and view all the answers

For officers who stay in guest houses maintained by the Company, what is the Halting Allowance if both boarding and lodging are provided free?

25% Signup and view all the answers

What is the limit on Halting Allowance for officers for stays beyond 180 days?

Half rate. Signup and view all the answers

What is the effect on the daily halting allowance if an employee stays in specified hotels?

Reduced by Rs. 10 per day Signup and view all the answers

Under what condition will breakfast charges be reimbursed when staying at a hotel?

If taken at the same hotel where the employee is staying Signup and view all the answers

What must be checked before reimbursing breakfast charges?

The cash memo/bills for standard breakfast charges Signup and view all the answers

What is the limit for reimbursement when employees are training outside their posting city?

Full halting allowance for 90 days if no lodging is provided Signup and view all the answers

What happens if breakfast is taken at a different hotel than the one where the employee is staying?

No reimbursement for breakfast charges Signup and view all the answers

How is the combined limit for lodging and breakfast charges determined?

Actual lodging charges and breakfast limits Signup and view all the answers

What deductive action is emphasized regarding breakfast charge reimbursements?

Strictly monitor for reasonable charges Signup and view all the answers

For which category of staff is the reimbursement policy applicable while staying at non-company hotels?

All employees including Clerical and Subordinate Staff Signup and view all the answers

What is the entitlement for employees attending interviews for higher posts in terms of allowances?

They are paid TA/DA accordingly. Signup and view all the answers

Which statement is correct regarding Casual Leave while on official tour?

Casual Leave does not entitle employees to halting allowance. Signup and view all the answers

When an employee falls sick while on tour, what is the allowance entitlement?

They receive fare for the return journey but no halting allowance. Signup and view all the answers

What happens to an employee’s tour status when they take Earned Leave while on tour?

The tour is considered to come to an end. Signup and view all the answers

If an employee is on leave at a location other than their headquarters and is required to go on an official tour, how is it treated?

They are deemed to have resumed duties upon tour commencement. Signup and view all the answers

Which type of leave allows for fare reimbursement for a return journey due to illness while on tour?

Sick Leave Signup and view all the answers

What should an employee expect regarding allowances if they take holidays during Casual Leave?

They will not receive halting allowance for holidays. Signup and view all the answers

What is the status of halting allowance if an employee is on Sick Leave and laid up while on tour?

They will not be entitled to halting allowance. Signup and view all the answers

Which of the following statements about TA/DA allowances for employees recalled from earned leave is true?

Employees are eligible for TA/DA regarding their return to headquarters given the leave address is provided. Signup and view all the answers

What documentation is required for settling travel claims by Rail?

Ticket numbers and the train name taken. Signup and view all the answers

What type of expenses are reimbursed for officers attending Lok Adalat sessions on Saturdays or holidays?

A flat amount of Rs. 1000 for out-of-pocket expenses. Signup and view all the answers

Which situation leads to no entitlement for TA/DA?

Employees attending exams under specific promotion policies. Signup and view all the answers

What is the maximum reimbursement allowed for booking charges when using travel agents for Railway tickets?

Service charges should be minimal. Signup and view all the answers

In what case can boarding passes be required for travel claims?

For Air travel claims only. Signup and view all the answers

Which group of employees is exempt from receiving separate TA/DA while on Election Duty?

Micro Observers and employees of National Insurance. Signup and view all the answers

Which travel-related expense does NOT require ticket submission for reimbursement?

Train journeys during normal operations. Signup and view all the answers

Study Notes

Encashment of Earned Leave During Service

All confirmed employees (officers, development officers, class III & IV) are allowed to encash earned leave up to a maximum of 15 days in a block of two years.
The leave account is debited by the number of days of leave encashed.
The block of two calendar years runs from even to odd years (e.g., 2014-15).
Salary for encashment calculation:
- Officers: Basic pay, DA, HRA, CCA, and fixed personal allowances (if any), excluding other allowances.
- Development Officers: Basic pay, DA, HRA, CCA, and fixed personal allowances (if any), excluding other allowances.
- Staff: Basic pay, DA, HRA, CCA, and fixed personal allowances (if any), excluding other allowances.
No contribution to provident fund is deducted from encashment amounts.
Company's contribution to provident fund is also not applicable.
HRA is only granted to employees drawing HRA on the date of encashment application.
Salary used for calculation is the employee's salary on the date of application divided by 30, then multiplied by the number of days of earned leave encashed.
Leave encashment is available for India-based officers posted abroad only when they are in India on leave. The salary used for encashment is the salary the officer would draw in India at that time.
Encashed amount will be sent to the India-based officer at their place of posting.

Travelling/Halting Allowance on Tour

Definition of Tour: A journey beyond 8 km from the outer municipal limits of the headquarters.
Definition of each Completed Journey: The journey is completed when an employee reaches the next place of duty. Journeys completed in one calendar day from midnight to midnight count as one complete journey.
Officers (Travelling Allowance): Officers are reimbursed actual fares (including reservations) using the mode and class of travel specified below:
- Scale VII, VI & V: Air/Rail (Economy Class/AC-I Class)
- Scale IV: Air/Rail (Economy Class/AC II Class/AC Sleeper)
- Scale III & II: Air/Rail (Economy Class/II Class/AC Sleeper/I Class)
Exceptions:
- Air travel is allowed if the fare does not exceed 125% of the entitled rail fare (or Rajdhani Express, if plying on the route), for distances not exceeding 1000 kilometers; otherwise, by Air (Economy Class)
Employee Vehicles: Officers using company cars will follow specific petrol and oil expenses policies, as detailed.
Travelling Allowance of Other Staff: The allowances and reimbursements for officers vary based on their basic salary, specifically whether it is above or below the threshold of Rs. 23,450.

Supervisory, Clerical and Subordinate Staff

Mode and Class of Travel: For employees with salaries above or below Rs 23,450.00 there are specific modes or train classes for journey travel, if applicable.
Travel by Road: Staff are allowed to travel by public transport, using upper-class seats where available, except for Subordinate Staff.

Travel by Higher Class

The Chairman-Cum-Managing Director or the General Manager may authorize officers to travel by Air or a higher class of travel.

Insurance Protection

Officers traveling by air on official duty may be allowed reimbursement for air insurance premiums.
Discretionary personal accident insurance may be purchased for official air travel at the employee's expense.
Premium limits are set for each officer position.

Conveyance Expenses

Residences to Stations: Employees will be reimbursed for expenses incurred in traveling from residence to rail/bus/airport and back for official tours.
Other: Applicable limits for Halting allowances, daily charges, incidentals etc. as per the designated class.

Hotel Expenses

Officers: Specific hotel categories (4-star AC single rooms, 3-star AC, 2-star non AC etc) are permissible depending on officer's scale.
Lodging Charges: Reimbursement limits are established according to the employee’s category, which may include designations such as junior staff, mid-level management, or senior executives. Additionally, these limits vary depending on the city where the employee is based, with different criteria for employees in major metropolitan areas, identified as Area I, and those in smaller, less populated regions.

City Classification

Major Cities: Ahmedabad, Mumbai, Bangalore, Kolkata, Delhi, Hyderabad, Chennai
Area I: Pune, Nagpur, Kanpur, etc
Other Area: Lucknow, etc

Check-off Time

Lodging reimbursement may be for 2 days even if employee check-in time is less than 24 hours.

Taxes and Service Charges

These expenses may be reimbursed over and above set hotel limits.

Reimbursement of Tips

Tips cannot be reimbursed over and above the hotel bill.

Breakfast Charges

Reimbursement for breakfast is limited to the actual charges incurred at the hotel in cases prescribed.

Special Provisions for Training

If officers have training for a period exceeding 90 days, halting allowance may be calculated at half the rate applicable to regular tours if lodging or boarding is provided.

Training at Headquarter

25% of daily halting allowance will be applicable to employees staying at the training venue.

Payment of TA/DA to Representatives

Associations/Union representatives may be reimbursed for TA/DA with prior permission from competent authority (in the employee's company) for meetings outside their station.

Appearing in the Examination

When employees appear for higher recruitment posts and are on duty, travel expenses and daily allowances may be reimbursed according to rules. This is not the case for written examinations.

Leave Treatment on Tour

Employees may take casual leave, however halting allowances wil not be paid in these instances.
Sick leave expenses are reimbursed, however lodging or halting allowances are not.
Earned Leave taken during tour is not eligible for halting allowance or lodging during the sick/earned leave period.
Employees on leave are not considered on tour unless they are outside their headquarters.
When traveling from one tour location to another, expenses relating to that travel segment (based on shortest/most economical route available) will be reimbursed.

Submission of Documents for Claim Settlement

Employees must submit details of ticket numbers and trains used to support claims travel by train.

Miscellaneous

Ticket Booking: Reimbursement for charges may be available, but may be kept to a minimum.
LokAdalat Expenses: Reimbursement of Rs 1,000 for attending Lok Adalat on Saturdays, Sundays, or holidays. Extra expenses allowed if the Lok Adalat isn't at the employee's posting.
Election Duty: No separate TA/DA is given, as allowances are already provided.

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Description

This quiz explores the policies surrounding the encashment of earned leave for employees, detailing eligibility, calculation of encashment amounts, and limitations. Participants will gain insights into the procedures applicable to different categories of employees and the financial implications of encashment.