The 26 days concept has come only based on Gratuity calculation. Secondly only the daily wage earners are required to be paid on 26 day calculation. Where as for monthly salaries it is 30 days calculation.
If we are to go by working days, then majority of the companies these days (except factories) work only 22 days. Then they have to resort to 22 days calculation. Certainly the employees are getting benefited, but for monthly wage earners you could go by 30 days.
K.Ramesh
From India, Bangalore
1If we are to go by working days, then majority of the companies these days (except factories) work only 22 days. Then they have to resort to 22 days calculation. Certainly the employees are getting benefited, but for monthly wage earners you could go by 30 days.
K.Ramesh
From India, Bangalore
It is debatable whether Basic is divided by 30 or 31. To come out from this puzzle the below mentioned formula is best:
One day Basic=((Basic+DA)*12)/365
PL encashment= ((Basic+DA)*12)/365*No. of days PL.
From India, Gurgaon
One day Basic=((Basic+DA)*12)/365
PL encashment= ((Basic+DA)*12)/365*No. of days PL.
From India, Gurgaon
Dear Mr. Rawat
The formula is absolutely right,But it depends on the company,s internal policies.
Because some time some companies are using 26 days instead of 30 days . But the actual is 30 days only.
Regards
Deepak
From India
The formula is absolutely right,But it depends on the company,s internal policies.
Because some time some companies are using 26 days instead of 30 days . But the actual is 30 days only.
Regards
Deepak
From India
Dear Neeraj K. Singh
The discussion being held is with regard to Wages for Leave period. The formula for calculating the wages for leave period as well as Amount for unavailed leaves (Encashment) is same, since it is provided in Sec. 80 of the Factories Act, which I have already reproduced in detail in my last post.
Regards
From India, Ludhiana
The discussion being held is with regard to Wages for Leave period. The formula for calculating the wages for leave period as well as Amount for unavailed leaves (Encashment) is same, since it is provided in Sec. 80 of the Factories Act, which I have already reproduced in detail in my last post.
Regards
From India, Ludhiana
Dear
As per the provisions of the Factories Act, the Encashment of earned leave is provided in Sec. 80. I am reproducing the same for your understanding.
80. Wages during leave period.- (1) For the leave allowed to him under section 78 or section 79, as the case may be], a worker shall be entitled to wages] at a rate equal to the daily average of his total full time earnings for the days on which he actually worked during the month immediately proceeding his leave, exclusive of any overtime and bonus but inclusive of dearness allowance and the cash equivalent of the advantage accruing through the concessional sale to the worker of foodgrains and other articles:
Provided that in the case of a worker who has not worked on any day during the calendar month immediately preceding his leave, he shall be paid at a rate equal to the daily average of his total full time earnings for the days on which he actually worked during the last calendar month proceeding his leave, in which he actually worked, exclusive of any overtime and bonus but inclusive of dearness allowance and the cash equivalent of the advantage accruing through the concessional sale to the workers of foodgrains and other articles.]
(2) The cash equivalent of the advantage accruing through the concessional sale to the worker of foodgrains and other articles shall be computed as often as may be prescribed on the basis of the maximum quantity of foodgrains and other articles admissible to a standard family.
Explanation 1.- `Standard family' means a family consisting of worker, his or her spouse and two children below the age of fourteen years requiring in all three adult consumption units.
Explanation 2.-`Adult consumption unit' means the consumption unit of a male above the age of fourteen years and the consumption unit of a female above the age of fourteen years and that of a child below the age of fourteen years shall be calculated at the rates of 0.8 and 0.6 respectively of one adult, consumption unit.
(3) The State Government may make rules prescribing-
(a) the manner in which the cash equivalent of the advantage accruing through the concessional sale to a worker of foodgrains and other articles shall be computed; and
(b) the registers that shall be maintained in a factory for the purpose of securing compliance with the provisions of this section.
As per my understanding "Total Full Time Earning" means the amount the person earned while he is on duty i.e. it included all allowances as well.
Thus the formula for encashment of unavailed leaves should be : Total Full Time earnings (i.e. Basic Salary + D.A. + other allowances) / 30 * No. of unavailed leaves.
Regards
From India, Ludhiana
As per the provisions of the Factories Act, the Encashment of earned leave is provided in Sec. 80. I am reproducing the same for your understanding.
80. Wages during leave period.- (1) For the leave allowed to him under section 78 or section 79, as the case may be], a worker shall be entitled to wages] at a rate equal to the daily average of his total full time earnings for the days on which he actually worked during the month immediately proceeding his leave, exclusive of any overtime and bonus but inclusive of dearness allowance and the cash equivalent of the advantage accruing through the concessional sale to the worker of foodgrains and other articles:
Provided that in the case of a worker who has not worked on any day during the calendar month immediately preceding his leave, he shall be paid at a rate equal to the daily average of his total full time earnings for the days on which he actually worked during the last calendar month proceeding his leave, in which he actually worked, exclusive of any overtime and bonus but inclusive of dearness allowance and the cash equivalent of the advantage accruing through the concessional sale to the workers of foodgrains and other articles.]
(2) The cash equivalent of the advantage accruing through the concessional sale to the worker of foodgrains and other articles shall be computed as often as may be prescribed on the basis of the maximum quantity of foodgrains and other articles admissible to a standard family.
Explanation 1.- `Standard family' means a family consisting of worker, his or her spouse and two children below the age of fourteen years requiring in all three adult consumption units.
Explanation 2.-`Adult consumption unit' means the consumption unit of a male above the age of fourteen years and the consumption unit of a female above the age of fourteen years and that of a child below the age of fourteen years shall be calculated at the rates of 0.8 and 0.6 respectively of one adult, consumption unit.
(3) The State Government may make rules prescribing-
(a) the manner in which the cash equivalent of the advantage accruing through the concessional sale to a worker of foodgrains and other articles shall be computed; and
(b) the registers that shall be maintained in a factory for the purpose of securing compliance with the provisions of this section.
As per my understanding "Total Full Time Earning" means the amount the person earned while he is on duty i.e. it included all allowances as well.
Thus the formula for encashment of unavailed leaves should be : Total Full Time earnings (i.e. Basic Salary + D.A. + other allowances) / 30 * No. of unavailed leaves.
Regards
From India, Ludhiana
The formula might be right in most cases. But as per CCS (Leave) Rules the formula is - Basic+DA/30xBalanced E/L Rosanga
From India, Aizawl
From India, Aizawl
If we take 12 month's average, the employee might not get the right benefit, in case if the employee's wages were revised just few months prior to his/her resigning. Secondly it must be only on gross wages and not only on Basic & DA
From India, Bangalore
From India, Bangalore
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.
CTC_SALARY_SLIP _FORM_(legal)(1 ).xls
Nominee vs legal heir.pdf
HR-LEGAL FORMS.zip