Karnataka: Encashment of earned leaves for government employees suspended

Bengaluru: State government employees will not be able to encash their earned leaves in the 2021 calendar as per a recent order issued by the Karnataka government.

While the order is applicable to all employees working in government undertakings, aided or unaided it exempts those employees who will retire in the calendar year. These employees will be eligible to encash their earned leaves in the month in which they superannuate.

A government order issued by the Finance Department cites “severe financial stress” arising due to Covid-19 pandemic as the reason for canceling the encashment of earned leaves.

Before this, there was a provision where government employees could encash up to 15 days of earned leaves.

The government froze the dearness allowance increases for government employees and pensioners with effect from January 1,2020 till June 2021.

A senior Finance Department official informed that the encashment of earned leave was cancelled when the GOI froze dearness allowance hikes last year and this order is like an extension of the cancellation.