Hi All, Can anyone tell me the calculation of leave encashment in a software development company. Shud it be calculated on the Basic + DA or on the entire salary. Rgds, Rajashree Bhalerao
From India, Pune
From India, Pune
Hi Friend,
I am afraid how one can say that Leave Encashment only paid on the Basic + DA.
Its always paid on full part of salary i.e. total salary. Beyond that P. F. is deductable on Basic + DA.
So be careful.
Cheer & Bye
SSehgal
From India, Mumbai
2I am afraid how one can say that Leave Encashment only paid on the Basic + DA.
Its always paid on full part of salary i.e. total salary. Beyond that P. F. is deductable on Basic + DA.
So be careful.
Cheer & Bye
SSehgal
From India, Mumbai
[Dear ALL,
Calculation for Leave encashment is done as such i.e. (Basic +DA)/30* no. of EL in hand (if DA is in your salary structure).
Leave encashment is done only on Basic + DA with 30 days base.
Regards
Mridula
Can anyone tell me the calculation of leave encashment in a software development company. Shud it be calculated on the Basic + DA or on the entire salary.
Rgds,
Rajashree Bhalerao[/quote]
From India, Delhi
Calculation for Leave encashment is done as such i.e. (Basic +DA)/30* no. of EL in hand (if DA is in your salary structure).
Leave encashment is done only on Basic + DA with 30 days base.
Regards
Mridula
Can anyone tell me the calculation of leave encashment in a software development company. Shud it be calculated on the Basic + DA or on the entire salary.
Rgds,
Rajashree Bhalerao[/quote]
From India, Delhi
Hi,
Based on judgements of various courts ( not citing the case laws ) , encasment is expected to be done on monthly gross salary and not on Basic + DA though most of the companies follow this practice . Please consult your labour advoicate who shall clarify on this subject further .
In this context I shall only suggest you to find out as to what shall happen when any employee proceed on leave - do you pay him only Basic + DA or monthly gross . Hope , this shall give you some clue.
I shall wish to further enlighten you that with amendment in PF Law through a notification, encasment shall attract PF deduction as well . Please be infromed on this subject .
Regards,
Rajpal
From India, Mumbai
Based on judgements of various courts ( not citing the case laws ) , encasment is expected to be done on monthly gross salary and not on Basic + DA though most of the companies follow this practice . Please consult your labour advoicate who shall clarify on this subject further .
In this context I shall only suggest you to find out as to what shall happen when any employee proceed on leave - do you pay him only Basic + DA or monthly gross . Hope , this shall give you some clue.
I shall wish to further enlighten you that with amendment in PF Law through a notification, encasment shall attract PF deduction as well . Please be infromed on this subject .
Regards,
Rajpal
From India, Mumbai
Dear Rajpal I am agree with you that Leave encashment paid on Full gross wages. but can you have a documanted provision for this issue as i m in urgent need SSehgal
From India, Mumbai
From India, Mumbai
:?:
i my self anagha ashok inamdar. i am the member of your great site.
i have one query about leave encashment.
how to calculate leave encashment?
defination of leave enacash ment?
i am working in pvt.ltd.co. as HR assistant.
so keep in touch with me.
anagha
From India, Pune
i my self anagha ashok inamdar. i am the member of your great site.
i have one query about leave encashment.
how to calculate leave encashment?
defination of leave enacash ment?
i am working in pvt.ltd.co. as HR assistant.
so keep in touch with me.
anagha
From India, Pune
:D Hi All,
I have noticed all kinds of response to Leave encashment and I would like to provide some inputs based on the earlier responses:
Please note that Companies can use two ways of calculating Leave Encashment:
1) basic + DA / 26 (days per month) * No. of Earned Leaves
2) Net salary / 30 (days per month) * No. of Earned Leaves.
The no. of days per month can be either 26 or 30 as some companies use 26 days based on the fact that employees do not work on Sundays 7 so the earned leaves can only be for that many days the employee has actually worked.
i hope the above helps clear any confusions that might have been caused by the earlier responses.
cheers!
Disha
I have noticed all kinds of response to Leave encashment and I would like to provide some inputs based on the earlier responses:
Please note that Companies can use two ways of calculating Leave Encashment:
1) basic + DA / 26 (days per month) * No. of Earned Leaves
2) Net salary / 30 (days per month) * No. of Earned Leaves.
The no. of days per month can be either 26 or 30 as some companies use 26 days based on the fact that employees do not work on Sundays 7 so the earned leaves can only be for that many days the employee has actually worked.
i hope the above helps clear any confusions that might have been caused by the earlier responses.
cheers!
Disha
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
SC -PF judgment on No PF on Leave encashment.doc
EPFO Circular Leave Encashment.jpg