5
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
From India, Salem
NO, If the EL balance is more than 15 we can pay for the rest Ex ;-29-15=14 el’s
From India, Hyderabad
From India, Hyderabad
There is no legislation on leave encashment during the service of an employee. Permitting leave encashment and its computation in such cases is at the discretion of the employer. Logically, the same components of wages that are considered for paying the employee when they avail leave should also be taken into account for its encashment.
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
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
leave encashment should always be calculated on gross salary. sumit kumar saxena
From India, Ghaziabad
From India, Ghaziabad
Is leave encashment to be calculated by dividing it by 360 or 240?
My settlement is pending, and my previous employer is calculating it by 360 days. However, the Gujarat Shops and Establishment Act shows earned leave based on 240 days.
I am not clear on the encashment calculation. Please help.
From India, Ahmedabad
My settlement is pending, and my previous employer is calculating it by 360 days. However, the Gujarat Shops and Establishment Act shows earned leave based on 240 days.
I am not clear on the encashment calculation. Please help.
From India, Ahmedabad
Dear Mayankmantri,
I am not able to understand your query. Leave Accrual and Leave Encashment pertaining to E.L are different. The former is on a yearly basis, and the latter is on a remainder basis. So where is the question of computation of leave encashment on the basis of 360 or 240 days?
From India, Salem
I am not able to understand your query. Leave Accrual and Leave Encashment pertaining to E.L are different. The former is on a yearly basis, and the latter is on a remainder basis. So where is the question of computation of leave encashment on the basis of 360 or 240 days?
From India, Salem
Dear Sir,
Thank you for your quick response. My question pertains to the calculation of the remainder while determining the leave encashment amount. I have observed that my previous employer calculates this by dividing it by 360. Could you please confirm if this method aligns with the laws specified in the Gujarat Shops and Establishment Act?
For instance, if I have accrued 10 leaves as part of my full and final settlement, would the calculation be as follows:
(Gross pay / 360) * 10 = leave encashment amount
Your guidance on this matter would be greatly appreciated.
Thank you.
From India, Ahmedabad
Thank you for your quick response. My question pertains to the calculation of the remainder while determining the leave encashment amount. I have observed that my previous employer calculates this by dividing it by 360. Could you please confirm if this method aligns with the laws specified in the Gujarat Shops and Establishment Act?
For instance, if I have accrued 10 leaves as part of my full and final settlement, would the calculation be as follows:
(Gross pay / 360) * 10 = leave encashment amount
Your guidance on this matter would be greatly appreciated.
Thank you.
From India, Ahmedabad
Dear friend,
I believe your query pertains to the calculation of the surrender value of the Leave salary. Under the Shops and Establishments Acts, employees are entitled to paid weekly holidays, National and Festival Holidays, PL, SL, and CL. Therefore, with their salary being monthly rated, the daily rate should be calculated by dividing the monthly salary by 30 only. The simplest formula to calculate the surrender value of EL would be: The last drawn monthly salary/30 X Number of days of EL surrendered.
From India, Salem
I believe your query pertains to the calculation of the surrender value of the Leave salary. Under the Shops and Establishments Acts, employees are entitled to paid weekly holidays, National and Festival Holidays, PL, SL, and CL. Therefore, with their salary being monthly rated, the daily rate should be calculated by dividing the monthly salary by 30 only. The simplest formula to calculate the surrender value of EL would be: The last drawn monthly salary/30 X Number of days of EL surrendered.
From India, Salem
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