Leave Encashment is a benefit that allows Indian Army personnel to convert their unused leave into cash. The Hamraaz web portal provides a convenient way to check your leave balance and apply for leave encashment. This guide covers everything you need to know about the process.
Understanding Leave Encashment in the Indian Army
Leave Encashment is a significant financial benefit that allows serving Army personnel to receive monetary compensation for their unused leave days. Here are the key points:
- Annual Encashment: Up to 30 days of earned leave can be encashed annually
- Lifetime Limit: Maximum 300 days during the entire service period
- Calculation Formula: (Basic Pay + Dearness Allowance) / 30 × Number of days encashed
- Tax Implications: Leave encashment received during service is fully taxable as income
- Retirement Benefit: Leave encashment at retirement has special tax exemptions
How to Check Leave Balance on Hamraaz
Before applying for leave encashment, you need to check your leave balance. Follow these steps:
- Log in to the Hamraaz Portal
First, log in to your Hamraaz account using your credentials. - Navigate to Leave Section
Look for the "Leave" or "Personnel" section in the main menu. - Select Leave Balance Option
Click on "Leave Balance" or similar option from the dropdown menu. - View Your Balance
Your current leave balance will be displayed, including:- Earned Leave (EL)
- Annual Leave (AL)
- Casual Leave (CL)
- Sick Leave (if applicable)
- Previous encashments (if any)
Applying for Leave Encashment Through Hamraaz
Once you've checked your leave balance, you can apply for leave encashment through the portal:
- Navigate to Leave Encashment Section
From the main menu, go to "Personnel" section and find the "Leave Encashment" option. - Fill the Application Form
Complete the online application form with the following details:- Number of leave days to encash (maximum 30 per year)
- Reason for encashment (if required)
- Bank account details (if not already updated)
- Review and Submit
Verify all the details you've entered before final submission. - Track Your Application
Note down the application reference number for future tracking. - Approval Process
The application will go through the approval chain as per Army protocols.
Eligibility Criteria for Leave Encashment
Not all personnel may be eligible for leave encashment at all times. Here are the key eligibility criteria:
| Criteria | Requirement |
| Minimum Leave Balance | Must have adequate earned leave balance in your account |
| Service Status | Must be in active service (not under suspension) |
| Previous Encashment | Must not have exceeded annual limit (30 days) in the current calendar year |
| Lifetime Limit | Must not have exceeded lifetime limit (300 days) |
| Special Circumstances | Special rules apply during posting to field areas, deputation, or medical conditions |
Processing Time and Payment
Understanding the timeline and payment process for leave encashment:
- Processing Time: Typically 15-30 days from the date of approval
- Payment Method: Direct credit to your registered bank account
- Notification: SMS alert when payment is processed
- Verification: Encashment details will be visible in your leave statement in the next cycle
- Pay Slip: The amount will be reflected in your salary statement for the month in which it is paid
Common Issues and Solutions
Some common problems faced by personnel while applying for leave encashment and their solutions:
- Incorrect Leave Balance: If your leave balance doesn't appear correct, raise a grievance through the portal
- Application Status Stuck: Contact your unit administration if application status remains unchanged for more than 30 days
- Payment Delay: If payment is not received within 30 days of approval, check with your Pay Accounts Office
- Technical Errors: Clear browser cache or try using a different browser if facing technical issues
- Incorrect Bank Details: Ensure your bank details are up-to-date in the system before applying
Leave Encashment Rules During Special Circumstances
Special rules apply for leave encashment during certain circumstances:
- Field Area Posting: Special entitlements for personnel posted in field or high-altitude areas
- Medical Board: Different rules may apply for those on medical leave or board
- Deputation/Foreign Assignment: Special provisions for personnel on deputation or foreign assignments
- Retirement: Additional benefits for encashment at the time of retirement
- Emergency Circumstances: Provisions for expedited processing during family emergencies
Frequently Asked Questions
How many days of leave can I encash per year?
You can encash up to 30 days of earned leave per calendar year, subject to availability in your leave account.
Is leave encashment taxable?
Yes, leave encashment received during service is fully taxable as income. However, there are special tax exemptions for leave encashment received at retirement.
Can I apply for partial leave encashment?
Yes, you can apply for encashment of any number of days up to the maximum allowed limit, provided you have sufficient leave balance.
How is the leave encashment amount calculated?
The formula is: (Basic Pay + Dearness Allowance) ÷ 30 × Number of days encashed.
What happens if my application for leave encashment is rejected?
If your application is rejected, you'll receive a notification with the reason. You can address the issues and reapply if eligible.