Many employers are paying on Gross, many employers are paying on Basic+DA and there are also many employers who have been paying on 5% of Basic+DA Monthly. which is appropriate?
From India, Ahmedabad
From India, Ahmedabad
Hi friend,
I don't understand what you mean by 5% of Basic+DA (did you mean 50% ?) monthly. Generally leave encashment is paid on gross salary (Basic +DA+fixed allowances). This in other words 'what an employee could have drawn had he went on normal, approved leave-with-pay, subject to TDS, if liable.
From India, Bangalore
1073I don't understand what you mean by 5% of Basic+DA (did you mean 50% ?) monthly. Generally leave encashment is paid on gross salary (Basic +DA+fixed allowances). This in other words 'what an employee could have drawn had he went on normal, approved leave-with-pay, subject to TDS, if liable.
From India, Bangalore
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
PF Contribution on Leave Encashment - Clarification by EPFO.pdf
SC -PF judgment on No PF on Leave encashment.doc
EPFO Circular Leave Encashment.jpg