Dear friends,
I am in serious need of help as I am not able to calculate the exact F&F amount.
Would appreciate if someone could help me on this. I will put forth the complete scenario.
An employee joins on 15 Sep 2010 with a CTC of 3.5 lacs p.a. and from April 2011 onwards the CTC was hiked to 3.7 lacs p.a.
Also, he had 3 compensatory offs pending with him since he worked on holidays.
As per the corporate policy, the employee is eligible for 7 sick leaves, 7 casual leaves, and 21 privileged leaves per annum. Only PL's are encashable.
The employee has submitted the resignation on 23 Nov 2011 and has to serve the notice of 45 days as per policy, and he did so.
The employee was on leave from 3 Nov 2011 to 14 Nov 2011 due to medical grounds. He had already used all his sick leaves, but he had his Casual Leaves and 3 comp offs. (Would there be any deduction in salary for being on leave?)
The employee was relieved from the organization on 6 Jan 2012.
Now, what would be the total F&F amount that needs to be paid to the employee.
Please help in this regard.
Thanks in advance.
From India, Delhi
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I am in serious need of help as I am not able to calculate the exact F&F amount.
Would appreciate if someone could help me on this. I will put forth the complete scenario.
An employee joins on 15 Sep 2010 with a CTC of 3.5 lacs p.a. and from April 2011 onwards the CTC was hiked to 3.7 lacs p.a.
Also, he had 3 compensatory offs pending with him since he worked on holidays.
As per the corporate policy, the employee is eligible for 7 sick leaves, 7 casual leaves, and 21 privileged leaves per annum. Only PL's are encashable.
The employee has submitted the resignation on 23 Nov 2011 and has to serve the notice of 45 days as per policy, and he did so.
The employee was on leave from 3 Nov 2011 to 14 Nov 2011 due to medical grounds. He had already used all his sick leaves, but he had his Casual Leaves and 3 comp offs. (Would there be any deduction in salary for being on leave?)
The employee was relieved from the organization on 6 Jan 2012.
Now, what would be the total F&F amount that needs to be paid to the employee.
Please help in this regard.
Thanks in advance.
From India, Delhi
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Dear,
You mention the CTC. It's good, but for the calculation, you have to consider the last drawn salary. For leave, PL is given earned up to the last date of relieving, and CL and SL are calculated on a proportionate basis. For example, if CL is allocated for the current year as 12, and if it is worked up to November, then the individual is eligible for 11 days CL. If more days are taken, then you may recover from PL. The same applies to SL. If the individual used the COFF, then it's okay, regardless of calculation.
Regarding other benefits like LTC and medical, you have to calculate as per your company's policies.
Regards, Mahesh
From India, Surat
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15You mention the CTC. It's good, but for the calculation, you have to consider the last drawn salary. For leave, PL is given earned up to the last date of relieving, and CL and SL are calculated on a proportionate basis. For example, if CL is allocated for the current year as 12, and if it is worked up to November, then the individual is eligible for 11 days CL. If more days are taken, then you may recover from PL. The same applies to SL. If the individual used the COFF, then it's okay, regardless of calculation.
Regarding other benefits like LTC and medical, you have to calculate as per your company's policies.
Regards, Mahesh
From India, Surat
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Hi Mahesh and other friends, Please find the enclosed attachment of heads for the calculation purpose. Awaiting a quick response on the same. Rgrds
From India, Delhi
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From India, Delhi
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Dear HR’s... Please help me in the above case...request your utmost time and response.
From India, Delhi
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From India, Delhi
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Dear Saiajith,
You should consider only Basic and Special Allowance for calculating the F&F Settlement Calculation. Since he has resigned from the job, he is not entitled to any other settlement except his leave encashment. After a 2-month period, you can provide him with the PF Forms and clear his PF dues.
From India, Kumbakonam
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You should consider only Basic and Special Allowance for calculating the F&F Settlement Calculation. Since he has resigned from the job, he is not entitled to any other settlement except his leave encashment. After a 2-month period, you can provide him with the PF Forms and clear his PF dues.
From India, Kumbakonam
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Dear Friends,
What are the government regulations on the calculation of the notice pay? Is there any fixed regulation regarding that from the Government of India/Income Tax Department of India, or is it based on the policies made by the company from time to time?
Regards
From India, Delhi
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What are the government regulations on the calculation of the notice pay? Is there any fixed regulation regarding that from the Government of India/Income Tax Department of India, or is it based on the policies made by the company from time to time?
Regards
From India, Delhi
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Hi there!
There are no government regulations either from the Government of India or the Income Tax Department regarding notice pay calculation; it all depends on the company policy, which can vary from company to company.
Only after an employee has been relieved, their PF Form needs to be submitted after two months, and the Gratuity can be paid to them immediately, that is within a week's time.
Regards,
Sulakshana
From India, Khopoli
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There are no government regulations either from the Government of India or the Income Tax Department regarding notice pay calculation; it all depends on the company policy, which can vary from company to company.
Only after an employee has been relieved, their PF Form needs to be submitted after two months, and the Gratuity can be paid to them immediately, that is within a week's time.
Regards,
Sulakshana
From India, Khopoli
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Hi,
As I feel you can consider the comp off for those two days and there is no need for any salary deduction for those two days. Also, there is no need to club it with CL to avoid confusion, as CL is not encashable. Only PL needs to be calculated on a pro-rata basis.
Regards,
VASAVI S
From India, Hyderabad
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As I feel you can consider the comp off for those two days and there is no need for any salary deduction for those two days. Also, there is no need to club it with CL to avoid confusion, as CL is not encashable. Only PL needs to be calculated on a pro-rata basis.
Regards,
VASAVI S
From India, Hyderabad
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Dear Sajith,
After considering the details you have mentioned, I would recommend giving him the following items during the full and final settlement:
- Salary
- PL Encashment amount
- Gratuity if he has successfully completed 5 years of service
It is very well said by the seniors that the question of deducting his salary for the leaves he had taken prior to his resignation doesn't arise. If he could have taken a leave after the resignation, then you have the right to deduct his salary, but not in the present scenario. You don't have to consider his comp off during the full and final settlement calculation.
Regards,
Shikha
From United States
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After considering the details you have mentioned, I would recommend giving him the following items during the full and final settlement:
- Salary
- PL Encashment amount
- Gratuity if he has successfully completed 5 years of service
It is very well said by the seniors that the question of deducting his salary for the leaves he had taken prior to his resignation doesn't arise. If he could have taken a leave after the resignation, then you have the right to deduct his salary, but not in the present scenario. You don't have to consider his comp off during the full and final settlement calculation.
Regards,
Shikha
From United States
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Hi friends,
Gratuity doesn't arise as the person has not completed 5 years in the company. Moreover, the person has 3 comp off's and 7 Casual Leaves so I think the 10 days off which he has taken can be adjusted against this. Since there is no government policy either by the Government of India or IT department, and there is no clause mentioned by the company policy that only Basic+HRA, the full salary including all the heads needs to be paid during the 45 days notice period.
Also, please advise me on whether I should calculate the notice pay based on the Basic+HRA or the complete heads mentioned in the word document. Please help me in the calculation so that we can rectify and give the proper F&F. Open for more suggestions.
From India, Delhi
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Gratuity doesn't arise as the person has not completed 5 years in the company. Moreover, the person has 3 comp off's and 7 Casual Leaves so I think the 10 days off which he has taken can be adjusted against this. Since there is no government policy either by the Government of India or IT department, and there is no clause mentioned by the company policy that only Basic+HRA, the full salary including all the heads needs to be paid during the 45 days notice period.
Also, please advise me on whether I should calculate the notice pay based on the Basic+HRA or the complete heads mentioned in the word document. Please help me in the calculation so that we can rectify and give the proper F&F. Open for more suggestions.
From India, Delhi
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FW Full and final settlement of all my dues including salary leave encashment Gratuity PF .zip
Full n final settlement.doc