Thursday 15 October 2020


The recently announced Leave Travel Concession (LTC) package according to me is a very beautifully decorated Trojan Horse or a sugar coated bitter pill for the government employees.  But definitely it is Manna from the heaven for the top billionaire business men at the cost of the employees. The main aim according to the Office Memorandum (OM) dated 12-10-2020 is to compensate the Central Government Employees who are not in a position to avail LTC in the current Block of 2018-21 and side by side boost the consumption expenditure. But actually what is going to happen is little alarming.

This is how it works the sample as illustrated in the OM mentioned above: -

First of all employee has to encash 10 days leave (Pay Rs.1,38,500/-)            =  Rs.   54,015/-

Fare Value for 4 member family                                 20000 x 4        =  Rs.   80,000/-

Total value                                                                               =  Rs.1,34,015/-

To get this amount, how much the employee has to spend from his pocket in advance?

Full leave encashment Rs.54,015/- + 3 times fare value

= Rs.54,015/- + Rs. 2,40,000/- = Total Rs. 2,94,015/-.

In short you have to spend in advance, Rs. 2,94,015/- to get Rs. 2,94,015/- (the amount will vary according to the individual pay and entitlement of LTC).

Now let us go to the real issues:-

  1. For financing this amount of Rs.2,94,015,, definitely employee has to take a loan, break fixed deposit or use credit card. What is the financial implication of this? For credit card, on monthly basis, interest component comes to 3.2% including the GST. On an annual basis, interest comes to 38.4%.i.e., That is, every month you have to pay Rs.9408/- to the bank for financing this MEGA LTC MELA. That is the employee has to bear the annual effect of Rs.1,12,896/- forgetting Rs.80,000/- as LTC.( Leave can be encashed or availed later also. Hence it is not a grant or concession from Government).
  2. Another hitch is that, the employee has to purchase the items having GST rate @12% or above. That is, items such as processed items including pan masala etc and heavy consumer items and high fly items of which profit directly goes to these high fly billionaires and and pushing their share prices. That is why I say that this new scheme is really a trap to catch the employee and not a benefit either to the employee or to the common man who are actually affected by the COVID issue.
  3. Therefore, it is better to think 10 times before venture into this LTC HANGAMA.


To read free part of my books:-

1.       ‘A FRAUD IN THE INDIAN CONSTITUTION’ in India, go to the below link and click “LOOK INSIDE” button:

2.      “LTC RULES MADE EASY”, go to below link and enter “LOOK INSIDE”: