Section 30(4) in The Khadi And Village Industries Commission Employees (Pension) Regulations, 1984
(4)If an employee immediately before his retirement or death while in service, was on earned leave and earned an increment which was not withheld, such increment, though not actually drawn, shall form part of his emoluments :Provided that the increment was earned during the currency of the earned leave not exceeding 120 days or during the first 120 days of earned leave where such leave was for more than 120 days.
