Hi users,
Can somebody tell me if the earned leave encashment calculation will be done based on basic + DA or gross wages? Is it Basic + DA or Gross wages / 26 * number of PL?
Another question I have is regarding overtime calculation. Will it be based on basic + DA or gross wages? Is it Basic DA or Gross wages / 26 / 8 * twice the working hours?
Please clear this doubt.
Thanks
From India, Chandigarh
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140Can somebody tell me if the earned leave encashment calculation will be done based on basic + DA or gross wages? Is it Basic + DA or Gross wages / 26 * number of PL?
Another question I have is regarding overtime calculation. Will it be based on basic + DA or gross wages? Is it Basic DA or Gross wages / 26 / 8 * twice the working hours?
Please clear this doubt.
Thanks
From India, Chandigarh
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Dear Vikas,
As per the law, the EL to be encashed on Basic + DA, it's compulsory for the purpose of compliance. Now, if we talk about the EL encashment, it depends on company policy, meaning varies from company to company. If an employer wants to pay on the gross salary, then he can, but our minimum requirement to follow proper compliance is (Basic + DA).
In the organizations, most of us encash on Basic + DA only. The detail of the calculation is as follows:
Basic + DA / 26) * no. of PL
Or if on Gross, then (Gross Salary / 26) * no. of PL.
Regards,
NN
From India, Delhi
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As per the law, the EL to be encashed on Basic + DA, it's compulsory for the purpose of compliance. Now, if we talk about the EL encashment, it depends on company policy, meaning varies from company to company. If an employer wants to pay on the gross salary, then he can, but our minimum requirement to follow proper compliance is (Basic + DA).
In the organizations, most of us encash on Basic + DA only. The detail of the calculation is as follows:
Basic + DA / 26) * no. of PL
Or if on Gross, then (Gross Salary / 26) * no. of PL.
Regards,
NN
From India, Delhi
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EL Calculation:
(Basic + DA / 26) * no. of PL
(10000 / 26) * 10 = 3846
Overtime Calculation: We calculate it based on Gross Wages, to be computed on a monthly basis and paid at double the rate.
OT Calculation = ((Gross Salary / month days) / working hours) * Number of OT hours
From India, Delhi
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(Basic + DA / 26) * no. of PL
(10000 / 26) * 10 = 3846
Overtime Calculation: We calculate it based on Gross Wages, to be computed on a monthly basis and paid at double the rate.
OT Calculation = ((Gross Salary / month days) / working hours) * Number of OT hours
From India, Delhi
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not as per law,,, its depend on employers, if an employer wanna then he can. most of us or everyone is paying on Basic + DA Regards NN
From India, Delhi
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From India, Delhi
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No, buddy, gross is not as per law. It depends on employers; if an employer wants to, then he can. Most of us or everyone is paying on Basic + DA.
Regards, NN
Attribution: https://www.citehr.com/414251-overti...#ixzz1xvt0Ig2g
From India, Delhi
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Regards, NN
Attribution: https://www.citehr.com/414251-overti...#ixzz1xvt0Ig2g
From India, Delhi
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