A method of manufacture of an integrated circuit packaging system includes: providing a pre-plated leadframe having a contact pad and a die paddle pad; forming an isolated contact from the pre-plated leadframe and the contact pad; mounting an integrated circuit die over the die paddle pad; and encapsulating with an encapsulation the integrated circuit die and the isolated contact, the encapsulation having a bottom surface which is planar and exposing in the bottom surface only the contact pad and the die paddle pad.