Salary Contribution & Pension Contribution
of Leave Salary Contribution
The monthly rate of leave salary contribution in respect of
all classes of Government servants governed by the Central Civil Services
(Leave) Rules is 11% of pay drawn in foreign service.
If the foreign employer pays
contributions, the percentage is applied to the pay actually drawn in foreign
If the contributions are paid by the Government servant
himself, the percentage is applied to the net pay drawn during foreign service.
Net pay means the pay that would be left after meeting the pension and leave
salary contributions. In such cases, the percentage of leave salary
contribution is not applied directly on the actual pay drawn during foreign
service, but an element of compensation is taken into account for both the
contributions before the percentage for leave salary contribution is
Three types of cases may arise and
three different formulae can be applied in such cases. Where pension
contribution alone is paid by the employee:
L = ( F - P ) x r / 100
Where leave salary contribution alone is paid by the employee:
L = F x r / ( 100 + r )
Where both the contributions are paid by the employee:
L = ( F - P) x r / ( 100 + r )
Where L is the leave salary
F is the pay actually drawn in foreign services,
P is the pension contribution, and
r is the rate of leave salary contribution.
Leave Salary Contribution is
collected from BSNL vis-à-vis non absorbed employees.