What is LPR (Leave Preparatory to Retirement)?
LPR stands for Leave Preparatory to Retirement. It is a type of leave granted to government employees in many countries, including Pakistan and India, as they approach retirement. The primary purpose of LPR is to allow employees to take time off before their official retirement date. During this time, they are generally relieved from their duties but continue to receive their salary and benefits.
LPR is designed to give employees time to transition from active service to retirement. It allows employees to take a break before stepping down from their job responsibilities, often in the final year or months leading up to their retirement. This leave can be used for personal reasons, to prepare for retirement, or to take care of health-related issues.
What is Leave Encashment?
Leave Encashment refers to the payment made to an employee for unused or accumulated leave days, typically in the form of a lump sum amount. When an employee has leave days that they have not utilized during their service, instead of taking time off, the government or employer compensates them by paying for those unused leave days.
Leave encashment is generally provided when:
- An employee is retiring or resigning.
- An employee decides not to take leave (such as opting out of LPR) and prefers to receive monetary compensation instead.
- The employee has accumulated leave days that are not taken during the course of their service.
The amount paid for leave encashment is usually calculated based on the employee’s current salary or the last drawn salary. In some cases, the rate of encashment may be linked to the employee’s pay scale or the government rules in place.
Difference Between LPR and Leave Encashment
- LPR (Leave Preparatory to Retirement) is a type of leave granted before retirement, where an employee takes time off from work but continues to receive full salary and benefits.
- Leave Encashment, on the other hand, is a monetary compensation provided to an employee for unused or accumulated leave days. Instead of taking leave, the employee receives a payment based on the value of those unused days.
In some cases, when an employee refuses to take LPR, they may receive leave encashment for the leave they would have taken, as seen in the notification you mentioned from the Punjab Finance Department.