Earned leave will be calculated as = Basic/30*No. of earned EL. There is no role of DA while calculation total amount of earned leave.
From India, Noida
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1From India, Noida
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Dear All, Calculation of Earned Leave should be on Gross Salary of 26 days. Formula should be for encashment of Leave = Gross Salary * No. of Earned Leave during the period/26. ANKUR RASTOGI
From India, New Delhi
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From India, New Delhi
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factories act clearly states wages including all allowamces need to be paid. The labor acts do not recognize the term basic salary.
From India, undefined
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From India, undefined
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As per the Factory Act, EL is earned as follows: for every 20 work days, 1 EL is earned. It is applicable to avail the same in the next calendar year or after 240 days in the same calendar year. EL is accumulated up to 30 or more, depending upon state rules (different states have different numbers). It is encashed at the present basic salary.
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There is not such a universal rule. Normally if someone is getting his/her EL cncashed, it is calculated on basic salary. i.e. Basic salary/26*multiplied by no. of ELs.
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Hi there,
I am sharing the details as per the current practice in my company. The calculation of Earned Leave (EL) is based on the salary eligible for EL, which includes Basic, Dearness Allowance (DA), and House Rent Allowance (HRA). The formula is: salary eligible for EL / 26 * number of EL days payable.
Hope this information is helpful to you!
Regards,
Prem Soni
From India, Alwar
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I am sharing the details as per the current practice in my company. The calculation of Earned Leave (EL) is based on the salary eligible for EL, which includes Basic, Dearness Allowance (DA), and House Rent Allowance (HRA). The formula is: salary eligible for EL / 26 * number of EL days payable.
Hope this information is helpful to you!
Regards,
Prem Soni
From India, Alwar
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Dear Soni,
You are lucky that your company has a practice of adding HRA to the salary for EL calculation. Otherwise, for EL calculation, the salary is meant to be Basic Salary + DA. The calculation should be: (Basic + DA / 26 * No. of EL).
Pramod Mishra
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You are lucky that your company has a practice of adding HRA to the salary for EL calculation. Otherwise, for EL calculation, the salary is meant to be Basic Salary + DA. The calculation should be: (Basic + DA / 26 * No. of EL).
Pramod Mishra
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HR_Pramod - If a person is in service and avails EL, then he gets full/gross salary. Similarly, for full and final settlement, EL should be calculated per Gross/full salary. The above is per Chapter VII of the Factories Act.
The company's policy, procedure, or past practice does not have legitimacy over the Factories Act. Are you aware of any clause or court judgment to support payment of only the basic salary in lieu of earned leave? Request to share.
Regards,
Navin
From India, undefined
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The company's policy, procedure, or past practice does not have legitimacy over the Factories Act. Are you aware of any clause or court judgment to support payment of only the basic salary in lieu of earned leave? Request to share.
Regards,
Navin
From India, undefined
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Dear friend,
The earned leave calculation is regulated by the Factories Act of 1948 and its State Rules. If any organization wishes to provide additional benefits to its employees, the calculation and payment would be made according to the organizational policy.
Regards, V K Sharma
From India, Delhi
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The earned leave calculation is regulated by the Factories Act of 1948 and its State Rules. If any organization wishes to provide additional benefits to its employees, the calculation and payment would be made according to the organizational policy.
Regards, V K Sharma
From India, Delhi
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