HI Friends, Iam having one query about calculation of ELs,Actually the formula for calculation of ELs is Basic Salary/26 * No. of leaves ...in that why we should divide Basic salary with 26 particularly,i thought that 26 is the working days in a month..but i want clear explanation on it ..can any one help me in this regard...
From India, Hyderabad
6From India, Hyderabad
Hi Ramya,
There is no specific formula for calculating ELs. This calculation is depends on the Leave Policy of concerned Organization. The Leave policy is different from organization to organization. Some organizations are calculating (Gross Salary-Incentives)/30* No. of ELs, Gross Salary/30* No.of ELs and Gross Salary/26* No.of ELs etc. Most of the organizations are dividing the Gross salary with 30 days only. We can see the concept of 26 days most probably in IT sectors. I think they are following Gratuity calculation formula i.e Basic Salary(PF Salary)/26*15*No.of completed years of service.I think this information cater your query.
regards,
Ramesh Rao
H.R-SPML
From India, Hyderabad
There is no specific formula for calculating ELs. This calculation is depends on the Leave Policy of concerned Organization. The Leave policy is different from organization to organization. Some organizations are calculating (Gross Salary-Incentives)/30* No. of ELs, Gross Salary/30* No.of ELs and Gross Salary/26* No.of ELs etc. Most of the organizations are dividing the Gross salary with 30 days only. We can see the concept of 26 days most probably in IT sectors. I think they are following Gratuity calculation formula i.e Basic Salary(PF Salary)/26*15*No.of completed years of service.I think this information cater your query.
regards,
Ramesh Rao
H.R-SPML
From India, Hyderabad
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PT Calculation formula.xls