The Centre on Wednesday clarified that is not mandatory for permanent government employees to avail themselves 20 days of earned leave every year.
“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,” said the government clarifying media reports stating otherwise.
Media reports claiming compulsory 20 days EL is fake: Govt
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Union Government has termed media reports claiming that its permanent employees will have to compulsorily take at least 20 days of Earned Leave every year to be fake and completely baseless. It added that no such announcement has been made as yet and urged the media groups to refrain from wide speculations.
A few media reports had earlier reported that Centre has decided to introduce a new leave encasement policy dictating all central government employees to take at least 20 days of earned leave every year. The report added this was done to prevent workers from hoarding leaves in order to get them encashed later and to promote healthy work-life balance for employees.
The claim now stands quashed as the fact-checking arm of the government’s information wing Press Information Bureau (PIB) confided it to be wrong.
In October 2020, the government announced an LTC cash voucher scheme for its employees. By opting for this scheme, government employees can purchase goods and services in lieu of the tax-exempt portion of the Leave Travel Concession/Leave Travel Allowance (LTA/LTC). He/she can claim tax-exemption on the travel fare encashed if the amount is spent by satisfying specified conditions.
Later, the Central government extended the Income Tax benefit on the LTC Cash Voucher scheme to the non-Central Government Employees, which includes private-sector workers as well. Govt LTC is different from LTA in the corporate sector
“The government LTC is quite 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 in a note.
