Hi any one can help me what will be the calculation of leave encashment in ctc structure (salary structure). what will be the formula or calculations.
From India, Mumbai
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From India, Mumbai
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There is no hard and fast rule stipulating any methodology for this purpose. Leave encashment generally has to be computed on the basis of the monthly basic gross salary last drawn (excluding any arrears, occasional incentives like production/sales incentive, OT, etc.), divided by 30 days, multiplied by the number of days of leave encashed. Annual charges not payable on monthly salary towards bonus contribution, gratuity, ESI, etc., are also excluded. The amount of leave encashed is taxable as 'salary income' but will not earn any contribution towards EPF/EPS. (Please see EPFO circular attached.)
From India, Bangalore
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1158From India, Bangalore
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