Dear Members,
Please clarify my doubt regarding EL calculation. I want to inquire why we only consider 240 days when there are 365 days in a year for calculating EL.
The formula used is 240/20 = 12, resulting in 12 EL days being provided. If we subtract 240 days from 365 days, we get 125 days. I am curious to know which specific 125 days are excluded from the total of 365 days, and what criteria are used to select the 240 days for EL calculation.
Your assistance in explaining this would be greatly appreciated.
Thank you.
From India, Delhi
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9Please clarify my doubt regarding EL calculation. I want to inquire why we only consider 240 days when there are 365 days in a year for calculating EL.
The formula used is 240/20 = 12, resulting in 12 EL days being provided. If we subtract 240 days from 365 days, we get 125 days. I am curious to know which specific 125 days are excluded from the total of 365 days, and what criteria are used to select the 240 days for EL calculation.
Your assistance in explaining this would be greatly appreciated.
Thank you.
From India, Delhi
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Dear Member,
Your question centers around the calculation of Earned Leaves (EL) based on a 240-day work year, despite there being 365 days in a year. The 240-day figure is used as per Indian labor law and excludes weekends, holidays, and leaves. The rationale behind this is that employees are not expected to work all 365 days in a year. Here's a comprehensive breakdown:
1. 🌞 Starting with 365 days, we first subtract 52 weekends (104 days). This assumes that all employees have weekends off. This brings the total to 261 days.
2. 🌞 We then subtract 12 paid public holidays. This leaves us with 249 working days.
3. 🌞 Lastly, we subtract 9 days of Casual Leave that are usually given to employees. This brings the total down to 240 working days.
The 125 days you're referring to include weekends, public holidays, and casual leaves. Therefore, the Earned Leaves are calculated on these 240 working days. The formula is 240/20 = 12. So, for every 20 days worked, you get one day of Earned Leave.
Please note that this is a general explanation, and some specific details might differ based on your company's policies and local labor laws. Always refer to your company's leave policy for accurate information.
In terms of legal reference, the Shops and Establishment Act and the Factories Act are the primary Indian labor laws governing leave entitlements. However, the interpretation and implementation of these laws can vary by state. Since you are in Delhi, the Delhi Shops and Establishments Act would be applicable.
I hope this clears your doubt! Feel free to ask if you have any more questions. 😊
From India, Gurugram
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Your question centers around the calculation of Earned Leaves (EL) based on a 240-day work year, despite there being 365 days in a year. The 240-day figure is used as per Indian labor law and excludes weekends, holidays, and leaves. The rationale behind this is that employees are not expected to work all 365 days in a year. Here's a comprehensive breakdown:
1. 🌞 Starting with 365 days, we first subtract 52 weekends (104 days). This assumes that all employees have weekends off. This brings the total to 261 days.
2. 🌞 We then subtract 12 paid public holidays. This leaves us with 249 working days.
3. 🌞 Lastly, we subtract 9 days of Casual Leave that are usually given to employees. This brings the total down to 240 working days.
The 125 days you're referring to include weekends, public holidays, and casual leaves. Therefore, the Earned Leaves are calculated on these 240 working days. The formula is 240/20 = 12. So, for every 20 days worked, you get one day of Earned Leave.
Please note that this is a general explanation, and some specific details might differ based on your company's policies and local labor laws. Always refer to your company's leave policy for accurate information.
In terms of legal reference, the Shops and Establishment Act and the Factories Act are the primary Indian labor laws governing leave entitlements. However, the interpretation and implementation of these laws can vary by state. Since you are in Delhi, the Delhi Shops and Establishments Act would be applicable.
I hope this clears your doubt! Feel free to ask if you have any more questions. 😊
From India, Gurugram
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf