Leave Encashment & LPR Rules for Govt Employees

Leave Preparatory to Retirement (LPR) & Encashment

Leave encashment is a significant financial benefit for retiring civil servants in Pakistan. Here are the updated rules governing LPR and encashment.

What is LPR?

Leave Preparatory to Retirement (LPR) is the leave a civil servant can take immediately before their formal date of retirement, subject to the availability of leave in their leave account.

The 365 Days Encashment Rule

If an employee chooses not to take LPR, or is denied LPR due to public interest, they are entitled to Leave Encashment.

• An employee can encash up to a maximum of 365 days of leave.
• The encashment amount is equivalent to the basic pay drawn by the employee on the date of their retirement (or the date LPR would have commenced).

How to Apply

A civil servant who wishes to obtain the benefit of encashment in lieu of LPR must submit a written application to the Appointing Authority at least three months before the date of commencement of their LPR.

Important Exceptions

• Compulsory Retirement: Civil servants who are compulsorily retired as a penalty under disciplinary rules are generally not entitled to the encashment of LPR.
• Late Application: A civil servant is generally not entitled to the benefit of encashment if they apply to the Appointing Authority after their actual date of retirement.