Good Afternoon All, I have one query from our staff, if leave encashment is paid on Basic salary than LWP be deducted from the full salary. Request that anyone can please share the clause for Leave encashment and LWP
From India, Mumbai
From India, Mumbai
Hi,
Both are different.
If the employee is absent without leave then for that particular day he is not eligible for any salary including all allowances. You cannot implement LWP in Basic salary alone.
Leave encashment is statutory and different.
From India, Madras
951Both are different.
If the employee is absent without leave then for that particular day he is not eligible for any salary including all allowances. You cannot implement LWP in Basic salary alone.
Leave encashment is statutory and different.
From India, Madras
If leave without pay deduction is on gross salary, then the leave encashment should also be gross salary. The policy of considering Basic salary alone or basic and dearness allowance (normally) and treating the entire salary for deductions, is bad in law.
From India, Kannur
From India, Kannur
Leave encashment and notice pay can be comparable but not leave without pay (LWP). If an organisation is paying leave encashment on Basic Salary then they cannot ethically ask for gross salary in lieu of short notice period. LWP is a leave without pay, so there is no question of someone being paid the allowance for the period he/she is absent.
From India, Kolkata
From India, Kolkata
Subject to conditions, Government servants are entitled for House Rent Allowance during LWP.
From India, Kochi
From India, Kochi
Very true and that is why it is an allowance. But in private organisations HRA is part of salary and is given to all employees just because it is excluded from the scope of wages /Salary for calculation of payments like Bonus, PF, Gratuity and leave encashment. It is also subject to deduction when an employee takes a single day's leave without pay. It is interesting that it is paid to all employees without reference to their residential status. If it is to be treated as an allowance not part of wages/ salary, it should be paid only to those reside in rented/ leased accommodation. It is not paid if the spouse is in receipt of HRA. The IT treatment also suggests that some valid rent receipt should also be furnished. Obviously, a rent receipt from a father or mother is also often submitted and is approved but it is approved knowingly and considering it as a 'vegetarian corruption'!!!
From India, Kannur
From India, Kannur
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x