LTC Leave Encashment Rules 2026: 10 Days Cash Benefit & 60 Days Limit

Updated: 23 January 2026 | Applies: All Central Govt Employees

Many employees treat LTC only as a “Ticket Reimbursement” scheme. However, under CCS (LTC) Rules, you are also entitled to Leave Encashment (selling your leaves) while in service. This provides extra liquidity for your travel expenses.

The 10-Day Encashment Rule

You can encash Earned Leave (EL) up to 10 days at a time. The amount is calculated as:

Formula: (Basic Pay + DA) ÷ 30 × No. of Days (Max 10)

Example: If your Basic Pay is ₹50,000 (Level 7) and DA is 60%, one day’s salary is approx ₹2,666. For 10 days, you get ₹26,660 cash.

Key Conditions for Eligibility

To claim this amount, you must satisfy ALL these conditions:

Spouse Working in Govt? (Double Benefit)

If both husband and wife are Central Government employees:

• Husband: Can encash 10 days on his LTC.
• Wife: Can encash 10 days on her LTC.
• Result: Both can claim separately, even if they travel together. This is a huge benefit for “couple employees.”

Common Rejection Reasons

Your encashment bill will be returned if:

• Low Balance: You have only 35 ELs. If you take 10 days encashment, balance becomes 25. (Rejected because balance < 30).
• No Travel: You cancelled the LTC ticket but tried to keep the encashment money. (Must be refunded with penal interest).
• Casual Leave: You availed LTC on Casual Leave (CL) but forgot to specifically apply for “Encashment” in the form.