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The pay for all practical purposes is Basic Pay. All other allowances e.g. DA, HRA, CCA, Conveyance allowance, LTA, Medical allowance, etc. are in the nature of compensatory allowance for meeting expenses on account of increase in cost of living (DA) or are of the reimbursement nature e.g. House rent, Conveyance/ medical/ cost of travel on leave travel, etc. Moreover for statutory requirement of PF, etc. the pay is Basic Pay only is considered. As such, for notice pay, only Basic pay is considered and not other allowance of compensatory/reimbursement nature.
TR Chhabria
From India, Gurgaon
TR Chhabria
From India, Gurgaon
As far as encashment is concern like leave, gratuity, bonus, & epf the component of basic+da is to be consider rather than gross pay but for notice pay only gross pay is consider.
sumit kumar saxena,
+91-9899669071, 0120-4131277
From India, Ghaziabad
sumit kumar saxena,
+91-9899669071, 0120-4131277
From India, Ghaziabad
Dear rkjain29
Your query has been answered correctly by T R Chhabria.
I would like to add that; generally DA is also included.
No other allowances are included, unless otherwise the terms of appointment so specify. However this, i.e. adding all other salary components while calculating deduction of Notice Pay from an employee, would not be considered a good and fair HR policy.
Warm regards.
From India, Delhi
Your query has been answered correctly by T R Chhabria.
I would like to add that; generally DA is also included.
No other allowances are included, unless otherwise the terms of appointment so specify. However this, i.e. adding all other salary components while calculating deduction of Notice Pay from an employee, would not be considered a good and fair HR policy.
Warm regards.
From India, Delhi
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