only in case of gratuity the calculation is 26 days as per the Act and rest of all calculation is 30 days
From India, Hyderabad
2From India, Hyderabad
Dear Mr.Rawat, As far as my knowledge, calculation of EL or PL Encashment is= Basic/ 26* no. of balanced EL or PL Regards, Sanjay Sharma
From India, New Delhi
From India, New Delhi
Dear Sharma
As per act formula is correct.but EL & Gratuity calculation will differ from company to company,bcz some company will manipulate salary for 26 ( working days ) & 30 days ( month days ).so according to the salary workings EL & Gratuity will be worked out.
Regards
Ramalingam.V
From India, Madras
As per act formula is correct.but EL & Gratuity calculation will differ from company to company,bcz some company will manipulate salary for 26 ( working days ) & 30 days ( month days ).so according to the salary workings EL & Gratuity will be worked out.
Regards
Ramalingam.V
From India, Madras
Hi, Your formula is absolutely right, we request you to refer your company’s leave policy on basis of that you can make payment of leave encashment. Regards, Deepa P.
From India, Mumbai
From India, Mumbai
The calcuation for gratuity is different and for leave encashment is different. It is quite legal to give encashment on basic alone. If there is a DA component given in the salary, it should also be included. However, HRA, Conveyance allowance etc need not be included as "leave encashment" is only for the wages earned and not for the allowances given. Your company is well within its right and you should accept the encashment given gracefully.
From India, Madras
From India, Madras
Dear Friend,
The Claculation you have showed depend on the Policy of the company.HR Manual of the company can resolve your doubts.However, in most of the Companies they use (Basic + DA)/30 * Balace EL .
EL is the earned leave for continuous work i.e 2.5 days per month of continuous service.In some companies it is credited in advnace for a quarter or six months.As it is earned by individual for his work/duty.Therefore,it forms as part of basic & DA .Some of the Companies pay matching PF contibution on EL encashment.However,this is not binding on the Company to pay matching as per the recent Hon'ble Supreme Court judgement.
From India, Bangalore
The Claculation you have showed depend on the Policy of the company.HR Manual of the company can resolve your doubts.However, in most of the Companies they use (Basic + DA)/30 * Balace EL .
EL is the earned leave for continuous work i.e 2.5 days per month of continuous service.In some companies it is credited in advnace for a quarter or six months.As it is earned by individual for his work/duty.Therefore,it forms as part of basic & DA .Some of the Companies pay matching PF contibution on EL encashment.However,this is not binding on the Company to pay matching as per the recent Hon'ble Supreme Court judgement.
From India, Bangalore
The Formula is right. But it must be paid ONLY ON GROSS. When an employee takes off on those days, the company pays the person on Gross wages only. If that is correct, then is it correct to pay an employee only Basic (which is roughly 40% of gross), and punish the employee for having ensured that the company had a smooth sailing, without the employee absenting / taking leave from work?
When the act is silent about the encashment, that does not mean one could reduce the encashment and pay only on basic. Several companies are faultering on this, as there are no inspections carried out by authorities on this issue.
From India, Bangalore
When the act is silent about the encashment, that does not mean one could reduce the encashment and pay only on basic. Several companies are faultering on this, as there are no inspections carried out by authorities on this issue.
From India, Bangalore
Leave encashment is required to be given only at the time of retirement / resignation. There are however, a few companies who do an annual leave encashment, which is in favour of employees, and is also more than the Statutory requirement.
It is better to stick to only when the employees retire / resign, in order to avoid increasing administrative issues.
Leave carry forward in Karnataka is 30, and it goes by state to state. If I am right, 42 is good enough.
K.Ramesh
From India, Bangalore
It is better to stick to only when the employees retire / resign, in order to avoid increasing administrative issues.
Leave carry forward in Karnataka is 30, and it goes by state to state. If I am right, 42 is good enough.
K.Ramesh
From India, Bangalore
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