Encashment of Leave on Half Pay for teaching and non-teaching staff of PR, Municipality and Aided Schools/colleges w.e.f 4.05.2010 G.O.MS.No.90

Encashment of Leave on Half Pay for teaching and non-teaching staff of PR, Municipality and Aided Schools/colleges w.e.f 4.05.2010 G.O.MS.No.90

LEAVE RULES - Encashment of Leave on Half Pay at the time of retirement of the teaching and non-teaching staff working in the Aided Junior Colleges / Degree Colleges / Oriental Colleges and also for teaching and non-teaching staff working in PR, Municipality and Aided Schools with retrospective effect– Orders – Issued.,GO.90,Dt.8/6/18

G..O.MS.No. 90                              Dated: 08-06-2018                                                                         
Read the following:-
1. G.O. Ms.No.154, Finance (FR.I) Department, Dt. 04.05.2010.
2. G.O. Ms.No.148, Finance (HR.IV) Department, Dt. 21.08.2017.
3. G.O.Ms.No.186, Finance (HR.IV) Department, dated.27.11.2017.
4. Orders of Hon’ble Andhra Pradesh Administrative Tribunal in O.A. No.6775/2014, O.A.No.323/2017, dated.10.02.2017and 652 of 2018, dated.11.04.2018.
5. Several Representations including representations of Sri Gade Srinivasulu Naidu, Sri Rama Surya Rao, Dr.A.S.Rama Krishna, Sri Balasubrahmanyam, and Sri Kathi Narasimha Reddy, Hon'ble Members of  A.P. Legislative Council.


Government of India vide Office Memorandum 14020/1/90-Estt. (L) dated 6.4.1993, Department of Personnel & Training allowed encashment of Half Pay Leave at the credit of Government servants who retire on superannuation subject to the condition that pension and pension equivalent of other retirement benefits be deducted from the amount payable as cash equivalent. The State Government in pursuance of the recommendations of the High Power Committee extended the benefit of encashment of Half Pay Leave at the credit of State Government employee on retirement as applicable to Central Government employees.

2.  Based on the recommendations of 6th CPC, the Government of India issued revised orders changing the formula vide O.M.No.14028/3/2008‐ Estt. (L) dated: 25th September, 2008. The Ninth Pay Revision Commission recommended to adopt the same formula in the case of encashment of leave also subject to the condition that the total number of days of earned leave + leave on half pay put together should not exceed 300 days for encashment. Accordingly orders were issued in G.O.Ms.No154, Finance(F.R.I) Department, dated:04.05.2010.

3.  On the reference from the Director of School Education, a clarification was issued vide Memo No. 7380/PE. Ser I/2012 dated 10.12.2012 that orders issued in G.O.Ms.No.154, Finance(F.R.I) Department, dated 04.05.2010 are applicable to the Government employees and not applicable to the employees of the Panchayat Raj and Municipal institutions. It led to large number of teachers approaching to the Hon’ble APAT.

4.   The Tenth  Pay  Revision Commission  recommended to  extend  the  facility  of encashment  of  Earned  Leave,  including the  Half  Pay  Leave  up  to  a  maximum  of  300 days  to  all the employees, teaching  as  well  as  non-teaching staff  of  aided  institutions and local  bodies  i.e.,  Aided Junior Colleges/Degree  Colleges/Oriental  Colleges  and also for teaching and  non-teaching staff  of  Aided Schools  and the  employees of Panchayat  Raj and  Municipal  institutions.

 5.   The Hon’ble APAT allowed the OA  No. 6775/2014 on 31.12.2015 with  the following observations : "This Court  had  an  occasion to  deal  with  the issue  whether the employees  including teachers of the Panchayat Raj &  Municipal Institutions ,  ZP  and  MP  Institutions  are Govt.  Servants  or  not  and  it  was held  by  this  court in  OA  No.1668/2015  and  batch dt:15.12.2015  that the employees  including  teachers  of the Panchayat Raj  & Municipal  institutions are  government  servants.  So,  in  view  of the  same, the  said issue is  held in  favour of  the applicant  in  the present  case  also  and consequently  the Impugned  Govt.  Memo No.7380/PE- Ser.I  /  2012,  dated  10-12-2012  Education (P.E.)  Department  is  set  aside and  the  respondents  are  directed  to allow  the applicant to encash the  half  pay leave  in terms  of  G.O.Ms. No. 154 Finance  (F.R.-I) Department, dated:  4-5-2010  with all consequential  benefits”.

 6.   Accordingly,  orders were issued in  the  references second read  above, extending the orders  issued  in  the reference first read  above to  the  teaching and non-teaching  staff  working in the  Municipal,  Panchayat  Raj  and Aided Institutions on par  with  the  Government  employees.  In the  reference third read  above,  the same facility  was extended  to the  teaching  and  non-teaching  staff of  Aided Junior Colleges/Degree  Colleges/Oriental  Colleges and  also  for non-teaching  staff  of  PR, Municipality  and Aided  Schools on  par with  the Government  employees.

7.   Several court cases have been  filed and they  were  allowed  on the  analogy  of the above  directions  of  the Hon’ble A.P.  Administrative  Tribunal.  Several representations  have  been received  and Hon’ble  Members  of  A.P.Legislative  Council particularly  the  teachers’  representatives raised  the  issue  and requested the Government  to  implement  the  orders  of  Hon’ble APAT  with  retrospective  effect  i.e. from  the date  of  issue  of  orders   in  the reference first  cited.

 8.   Government after careful  examination of  the  matter and keeping in  view  that homogeneous  group of  employees  cannot be  discriminated,  in  suppression  of  the orders issued  in  GO third read above hereby  order that the orders issued in the reference  first  read  above be extended  to  the  teaching  and  non-teaching  staff working  in the Aided  Junior Colleges / Degree  Colleges / Oriental Colleges and  also   for teaching and  non-teaching staff  working  in  PR,  Municipality  and  Aided Schools with  effect  from  4.05.2010

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