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Anonymous
5

El’s Are Calculated on BAsic+Da( If Applicable)
From India, Hyderabad
umakanthan53
6018

Dear friend from Hyderabad, If your employee goes on earned leave for 15 days after due approval, will you pay him only basic and D.A for those 15 days?
From India, Salem
satyanarayana38mba
5

NO, If the EL balance is more than 15 we can pay for the rest Ex ;-29-15=14 el’s
From India, Hyderabad
varghesemathew
912

There is no legislation on leave encashment during the service of an employee.Permitting leave encashment and its computation in such cases is the discretion of the employer. Logically the same compnents of wages that is considered for paying the employee when he avail leave should be taken for its encashment also.
For encashment at the end of service consider the definition of wages and other provisions of the respective Acts governing the same.
Varghese Mathew
Tvm 9961266966

From India, Thiruvananthapuram
sumitk.saxena
252

leave encashment should always be calculated on gross salary. sumit kumar saxena
From India, Ghaziabad
gururajeshwar-k-n
1

To my understanding, EL is on Basic Pay. Thanks Guru
From India
MayankMantri
Is leave encashment to be calculated dividing it by 360 or 240?
My settlement is pending and my previous employers is calculating it by 360. Although Gujarat shops and establishment act shows earned leave based on 240.
Not clear on encashment calculation. Please help.

From India, Ahmedabad
umakanthan53
6018

Dear Mayankmantri,
I am not able to understand your query.
Leave Accrual and Leave Encashment pertaining to E.L are different.The former is yearly basis and the latter is on remainder basis.
So where is the question of computation of leave encashment on the basis of 360 or 240 days?

From India, Salem
MayankMantri
Dear Sir,
Thank you for your quick response
My question is for remainder while calculating leave encashment amount. My previous employer is calculating it dividing by 360. Is it correct as per the law or Gujarat shops and establishment act?
For example. 10 leaves i have as per my full and final settlement. So, will it be calculated like below-
(Gross pay/360)*10= leave encashment amount

From India, Ahmedabad
umakanthan53
6018

Dear friend,
I think that your query relates to the calculation of surrender value of the Leave salary. Under the Shops and Establishments Acts, the employees are entitled to paid weekly holidays, National and Festival Holidays, PL,SL and CL. Therefore, their salary being monthly rated, daily rate should be arrived at by dividing the monthly salary by 30 only. As such, the easiest formula to calculate the surrender value of EL would be - The last drawn monthly salary/30 X No.of days of EL surrendered.

From India, Salem
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