Dear All,
I am a very new member of this forum (only this morning) and I became member because I would like know how to calculate leave encashment. Now because of all of you, I got an idea how to calculate it.
Brgds,
MoeKyaw
From United States, Fremont
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I am a very new member of this forum (only this morning) and I became member because I would like know how to calculate leave encashment. Now because of all of you, I got an idea how to calculate it.
Brgds,
MoeKyaw
From United States, Fremont
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is it menditory to calculate the leave encashment on basic salary.If no than If any company calculate the leave encashment on basic +D.A than what will ne legal action on company. Thanks Braj Bhushan
From India, New Delhi
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From India, New Delhi
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is there any supreme court judgement on the subject that earned leave will be encash on gross salary and/or by calculating on the basis of working days or paid days, anil sharma
From India, Delhi
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From India, Delhi
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Dear Friends' When this encashment of EL is done? Is there any last date ?
From India, Ahmedabad
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From India, Ahmedabad
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Dear All,
Regarding Leave Encashment, yes, the existing company policy with respect to Earned, Medical, or Casual Leave, which is written and/or practiced, will be the determining factor regarding the maximum number of days as well as the salary components applicable thereon.
As for the method of calculation, I hope there is a consensus that the amount pertaining to applicable monthly salary components should be divided by a standard figure of 26, as applicable in the case of gratuity or other statutory benefits calculations, to arrive at the per day earning, which should be common to all organizations.
Is this the right way and the only way to calculate the days earning of the employee? Does this stand the test of any laws governing employment in both the private as well as government organizations?
Request your clarification.
Shridhar
From India, Bangalore
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Regarding Leave Encashment, yes, the existing company policy with respect to Earned, Medical, or Casual Leave, which is written and/or practiced, will be the determining factor regarding the maximum number of days as well as the salary components applicable thereon.
As for the method of calculation, I hope there is a consensus that the amount pertaining to applicable monthly salary components should be divided by a standard figure of 26, as applicable in the case of gratuity or other statutory benefits calculations, to arrive at the per day earning, which should be common to all organizations.
Is this the right way and the only way to calculate the days earning of the employee? Does this stand the test of any laws governing employment in both the private as well as government organizations?
Request your clarification.
Shridhar
From India, Bangalore
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Hi team,
I understand the review you all have given in the conversation. But I just wanted to know if the above calculations are applicable for the Radio Cab Company. As I am working as an HR Executive, please tell me how to calculate the paid leaves of an employee who has a gross salary of $16,800, a net salary of $16,600, and has taken 34 paid leaves till date. What will be the final amount payable to that employee?
Please reply to me quickly as I need to work on this promptly.
From India, Pune
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I understand the review you all have given in the conversation. But I just wanted to know if the above calculations are applicable for the Radio Cab Company. As I am working as an HR Executive, please tell me how to calculate the paid leaves of an employee who has a gross salary of $16,800, a net salary of $16,600, and has taken 34 paid leaves till date. What will be the final amount payable to that employee?
Please reply to me quickly as I need to work on this promptly.
From India, Pune
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An organization will either fall under the Factories Act or the Shop and Establishment Act. The term "basic salary" is not recognized by the above acts. The term "basic salary" is used by Income Tax and PF authorities. The above acts recognize the term "wage," which is inclusive of all allowances, including food grain subsidy! The Payment of Wages Act defines "wage."
Please let me know if you need any further assistance.
From India, undefined
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Please let me know if you need any further assistance.
From India, undefined
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Dear Palak! leave encashment is calculated on the basic means 5000 . (Basic + DA)/26 * Privilege leave
From India, Bareilly
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5From India, Bareilly
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Hi, I am working as an HR professional in a Telecom firm. I wanted to know the legal implications if we restrict PL encashment or carry forward to only 2 leaves in a year. Since we have a lot of work-from-home (WFH) options, can we go ahead with such changes in the leave policy?
From India, Bangalore
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From India, Bangalore
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
EPFO Circular Leave Encashment.jpg