Hi,
How does PL encashment works in companies? Does it need to be calulated on basic or on gross? Does PL encashment need to be deducted with both PF and ESI? Please clarify on these issues.
Regards
Chitra
From India, Madras
How does PL encashment works in companies? Does it need to be calulated on basic or on gross? Does PL encashment need to be deducted with both PF and ESI? Please clarify on these issues.
Regards
Chitra
From India, Madras
Dear Chitra,
PL encashment is done on BASIC + DA only. No deduction should be made on PL encashment.
PL encashment depends on company policy. Each company will allow for some accumulations over & above they will encash. And also on exit while doing Full & Final Settlement what ever the PL are left over they will be encashed.
Regards,
SIVA
From India, Hyderabad
2PL encashment is done on BASIC + DA only. No deduction should be made on PL encashment.
PL encashment depends on company policy. Each company will allow for some accumulations over & above they will encash. And also on exit while doing Full & Final Settlement what ever the PL are left over they will be encashed.
Regards,
SIVA
From India, Hyderabad
Chitra, PL is calculated on monthly salary. Equation: Monthly Salary (Basic+DA) x PL Days/30 Days PF and ESIC is not deductible on this amount. Vishal
From India, Vadodara
From India, Vadodara
dear
first of all whether PL encashment is done on basic or gross,it depends upon your company policy becuse law is not clear on it.so some company pay it on gross and some on basic.
number of leave as per shop and establisment act is not fixed as different state have
different quantum of leave.
tks
js malik
From India, Delhi
first of all whether PL encashment is done on basic or gross,it depends upon your company policy becuse law is not clear on it.so some company pay it on gross and some on basic.
number of leave as per shop and establisment act is not fixed as different state have
different quantum of leave.
tks
js malik
From India, Delhi
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PF on PL SC.doc
PF Contribution on Leave Encashment - Clarification by EPFO.pdf