Hi All,
Thanks all my seniors for their contribution......
Still the doubt persists that it is calculated on Basic or Gross.....but any ways in our company we have decided on Gross Salary....( Mr.Kale : your points on using both basic and gross seems good...but is ii generally used???
Regards,
Deepthi Shetty.
From India, Mumbai
3Thanks all my seniors for their contribution......
Still the doubt persists that it is calculated on Basic or Gross.....but any ways in our company we have decided on Gross Salary....( Mr.Kale : your points on using both basic and gross seems good...but is ii generally used???
Regards,
Deepthi Shetty.
From India, Mumbai
Dear Deepthi, My answer to ur question is in affirmative. this is unsaid rule that those who r in the home hospitality goes with them and outgoings r always be oversighted. regards, KIRAN KALE
From India, Kolhapur
From India, Kolhapur
Dear Kiran Kale,
Greetings for the day,
Leave encashment is paid only on Gross salary not on basic, the simple logic behind is that if any body is on leave without pay then we not only deduct basic but the whole allowances. If in your concern the deduction of only basic is done then its fine.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
Greetings for the day,
Leave encashment is paid only on Gross salary not on basic, the simple logic behind is that if any body is on leave without pay then we not only deduct basic but the whole allowances. If in your concern the deduction of only basic is done then its fine.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
Dear all,
We have 18 PL in a year.Leave shall be on working days basis.Any Weekend/holiday,Preceeding,Succeedingor falling in between the leave period will not be
included for the purpose of calculation of leave. If any emplyee wants to take a leave on friday and saturday and sunday is off and wants to continue his leaves till monday so his leaveswill be deducted for all four days or only for friday and monday just let me know on urgent basis.
Regards
From India, Chandigarh
We have 18 PL in a year.Leave shall be on working days basis.Any Weekend/holiday,Preceeding,Succeedingor falling in between the leave period will not be
included for the purpose of calculation of leave. If any emplyee wants to take a leave on friday and saturday and sunday is off and wants to continue his leaves till monday so his leaveswill be deducted for all four days or only for friday and monday just let me know on urgent basis.
Regards
From India, Chandigarh
Hi .. Greetings to all.
Regarding PL .. The computation generally followed is on financial year basis and the calculation for encashment of pl is as under
basic + da /26 x no. of days of encashment.
Many organisations dont allow all unutilised pl to be encashed except at the the time of retirement / resignation / termination.
From India, Madras
Regarding PL .. The computation generally followed is on financial year basis and the calculation for encashment of pl is as under
basic + da /26 x no. of days of encashment.
Many organisations dont allow all unutilised pl to be encashed except at the the time of retirement / resignation / termination.
From India, Madras
Encashment of leave is only on Basic & D.A as per Act, if organisation willing to encash on whole salary including allowances then it is fine (up to the policy of company).
Keep in mind the calculation should be based on 26 days.
From India, Mumbai
Keep in mind the calculation should be based on 26 days.
From India, Mumbai
Hello Friends, Is there any written rule if Leave Encashment either to be done on Basic+Da OR on Gross Salary per month. Please share if you have anywhere in writing.
From India, Faridabad
From India, Faridabad
Privilege Leave is calculated as Daily Average Wages given in last three month.
Wages is defined under Minimum Wages Act.
Understanding is- Gross Salary of an Employee for the month is considered as wages. Only incentive or Overtime should not be considered.
Reference -http://spuwac.com/pdf/delhishopsnestablishmentsact.pdf
Point no. 23.
For Example- If an employee has Gross Salary of 26000. Then his daily wages/salary will be 1000. Which is calculated by the Formulae- Gross Salary/26=26000/26=1000.
Let's say his / her PL balance is 30 then he/she eligible amount will be 1000*30=30000 as His/her Privilege Leave Amount.
From India, Noida
Wages is defined under Minimum Wages Act.
Understanding is- Gross Salary of an Employee for the month is considered as wages. Only incentive or Overtime should not be considered.
Reference -http://spuwac.com/pdf/delhishopsnestablishmentsact.pdf
Point no. 23.
For Example- If an employee has Gross Salary of 26000. Then his daily wages/salary will be 1000. Which is calculated by the Formulae- Gross Salary/26=26000/26=1000.
Let's say his / her PL balance is 30 then he/she eligible amount will be 1000*30=30000 as His/her Privilege Leave Amount.
From India, Noida
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x