Dear All,
As per rule, leave should be encashed on basic salary. That is the minimum limit. Rest depend on the company policy.
Every employee who has been confirmed or completed probiation period entitle for 1 EL on each 20 working days. So minimum EL should be 14 in a year. Rest depend on the company policy.
Calculation = (Basic Salary/26)*No of EL - ESI
example = (3500/26)*14-1.75% = 1852
Rgds/Jitender
From India, New Delhi
68As per rule, leave should be encashed on basic salary. That is the minimum limit. Rest depend on the company policy.
Every employee who has been confirmed or completed probiation period entitle for 1 EL on each 20 working days. So minimum EL should be 14 in a year. Rest depend on the company policy.
Calculation = (Basic Salary/26)*No of EL - ESI
example = (3500/26)*14-1.75% = 1852
Rgds/Jitender
From India, New Delhi
Suppose basic of a person is 10000 per month so now if 15 leaves are to be encashed then it is calculated as 10000*12/365*15 or pls show me some eg. as to how to calculate
From India, Pune
From India, Pune
It is calculated as (10000/26)*15
when you divide the basic component by 26, you get the basic equivalent for one day. So 385 is one day's basic pay. Now multiply it by the number of days to be encashed. i.e
385*15=5775
From India, New Delhi
when you divide the basic component by 26, you get the basic equivalent for one day. So 385 is one day's basic pay. Now multiply it by the number of days to be encashed. i.e
385*15=5775
From India, New Delhi
As an hr i would like to give my view.please let me know whether i am correct or wrong.
leave encashment is done of paid leaves or earn leaves i.e PL or EL.
if i take one day leave,then i am paid one day salary i.e from my gross salary.
so it is simple that it calculated from gross.
For example:
x's gross = 7500/-
then one day salary = 7500/30 = 250/-
leaves remaining at the end of the year = 12 leaves
leave encashment amount = 12*250 = 3000/-
hoping that i am able to clear a bit of it.
regards
anand
From India, Bharat
leave encashment is done of paid leaves or earn leaves i.e PL or EL.
if i take one day leave,then i am paid one day salary i.e from my gross salary.
so it is simple that it calculated from gross.
For example:
x's gross = 7500/-
then one day salary = 7500/30 = 250/-
leaves remaining at the end of the year = 12 leaves
leave encashment amount = 12*250 = 3000/-
hoping that i am able to clear a bit of it.
regards
anand
From India, Bharat
The formula would be
Basic Salary/26 days (no. of working days Per month it may vary 22 days or 26 days) mutiply with no.of days to be en-cashed.
Eg: Basic = 7,000
No. days to be encashed = 24
Then, leave encashment = 7,000/26 x 24 = 6,462.00
From India, Srikakulam
Hi ,
I do agree with pratima . Leave encahment can be done in both of the ways whichever suits to the company . Either on (Basic+DA) or on gross. In our organisation we follow Leave encashment on (Basic+DA) , so that they enjoy their leaves & be more productive afterall they are not machines.suggestions are appreciable.
Regards,
Ashfaque
From India, Gurgaon
I do agree with pratima . Leave encahment can be done in both of the ways whichever suits to the company . Either on (Basic+DA) or on gross. In our organisation we follow Leave encashment on (Basic+DA) , so that they enjoy their leaves & be more productive afterall they are not machines.suggestions are appreciable.
Regards,
Ashfaque
From India, Gurgaon
Dear Team
an employee apply for the cl for two days in between that two days if declared holiday comes whether employee has to give leave application for that or its declared holiday only?
Regards
Manju
From India, Mumbai
an employee apply for the cl for two days in between that two days if declared holiday comes whether employee has to give leave application for that or its declared holiday only?
Regards
Manju
From India, Mumbai
Hear as per my knowledge only the PL Leaves will be encashed not Sick & Casual Leave. Leave enachment is calculated is as follows
1. Total Basic Salary + DA (pm)
2. Multiply the same * 12 (for year)
3. Divide the amoun amount x 365 days (you will get one day salary)
4. One salary x no of PL Balance
Example
1. Basic+DA is = Rs. 10000
2. Basic+Da * 12 months = Rs. 1,20,000/-
3. One Year Basic Salary / 365 days = 328.77
4. One Day Salary * No of Leave Balance (PL) = Rs. 7,232.88
For calculation is have taken 22 as Leave Balance is there and the same has to be payable
Thanks & regards
Ravi
From India, Bangalore
1. Total Basic Salary + DA (pm)
2. Multiply the same * 12 (for year)
3. Divide the amoun amount x 365 days (you will get one day salary)
4. One salary x no of PL Balance
Example
1. Basic+DA is = Rs. 10000
2. Basic+Da * 12 months = Rs. 1,20,000/-
3. One Year Basic Salary / 365 days = 328.77
4. One Day Salary * No of Leave Balance (PL) = Rs. 7,232.88
For calculation is have taken 22 as Leave Balance is there and the same has to be payable
Thanks & regards
Ravi
From India, Bangalore
Hear as per my knowledge only the PL Leaves will be encashed not Sick & Casual Leave. Leave enachment is calculated is as follows
1. Total Basic Salary + DA (pm)
2. Multiply the same * 12 (for year)
3. Divide the amoun amount x 365 days (you will get one day salary)
4. One salary x no of PL Balance
Example
1. Basic+DA is = Rs. 10000
2. Basic+Da * 12 months = Rs. 1,20,000/-
3. One Year Basic Salary / 365 days = 328.77
4. One Day Salary * No of Leave Balance (PL) = Rs. 7,232.88
For calculation is have taken 22 as Leave Balance is there and the same has to be payable
Thanks & regards
Ravi
From India, Bangalore
1. Total Basic Salary + DA (pm)
2. Multiply the same * 12 (for year)
3. Divide the amoun amount x 365 days (you will get one day salary)
4. One salary x no of PL Balance
Example
1. Basic+DA is = Rs. 10000
2. Basic+Da * 12 months = Rs. 1,20,000/-
3. One Year Basic Salary / 365 days = 328.77
4. One Day Salary * No of Leave Balance (PL) = Rs. 7,232.88
For calculation is have taken 22 as Leave Balance is there and the same has to be payable
Thanks & regards
Ravi
From India, Bangalore
Dear Friends,
As per the Factories Act, the leave encashment has to be on Basic+D.A., which is minimum as per the Statutory requirement, but if any employer is paying more than the statutory requirement, than it has no boundation, an employer can always give the benefit more than the minimum prescribed under the Act.
From India, Delhi
As per the Factories Act, the leave encashment has to be on Basic+D.A., which is minimum as per the Statutory requirement, but if any employer is paying more than the statutory requirement, than it has no boundation, an employer can always give the benefit more than the minimum prescribed under the Act.
From India, Delhi
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