Hi, Encashment of Earned leave is always calculated on gross salary of current Year.
From India, Ranchi
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83From India, Ranchi
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HAI sumitk.saxena, malay.kumar1 PLEASE ENCLOSE GO OR ANY RULE RELATED TO Encashment of Earned leave MUST calculated on gross salary
From India, Mumbai
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From India, Mumbai
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HAI sumitk.saxena, malay.kumar1 PLEASE ENCLOSE GOVT. ORDER OR ANY RULE RELATED TO Encashment of Earned leave MUST calculated on gross salary
From India, Mumbai
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From India, Mumbai
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Dear Sir,
As per the Bombay Shops and Establishment Act, only 42 leaves can be accumulated, and the rest of the leaves can be forfeited by the company. However, it totally depends upon the policy of the company. The formula for leave encashment is as follows:
(Basic + HRA) / 30 x number of days to encash
Regards,
Rahul
From India, Pune
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As per the Bombay Shops and Establishment Act, only 42 leaves can be accumulated, and the rest of the leaves can be forfeited by the company. However, it totally depends upon the policy of the company. The formula for leave encashment is as follows:
(Basic + HRA) / 30 x number of days to encash
Regards,
Rahul
From India, Pune
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Dear Prasad,
For the first query, you cannot encash leave with the salary from the respective year. The payment should be made based on the last drawn wages or salary. Please let me know if your organization falls under the Shops and Establishments Act or the Factories Act so that I can suggest whether you need to make payments based on Basic + DA or gross salary.
Regards
From India, Coimbatore
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For the first query, you cannot encash leave with the salary from the respective year. The payment should be made based on the last drawn wages or salary. Please let me know if your organization falls under the Shops and Establishments Act or the Factories Act so that I can suggest whether you need to make payments based on Basic + DA or gross salary.
Regards
From India, Coimbatore
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Dear Ramesh we comes under AP shops and est act Regrads PRasad
From India, Hyderabad
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From India, Hyderabad
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Dear All, Earned leaves encashment depends on the company’s policy only. Im supporting priyas statement. Company should decide whether they will give on basic salary or others. regards, narayan
From India, Hyderabad
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From India, Hyderabad
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Leave encashment should be on Gross for more Details See Section 79 and 80 of the Factory Act 1948.
From India, Mumbai
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From India, Mumbai
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Dear Deepak,
Thank you for the information.
One thing people are not understanding is that when they take leave, they want to have their one day salary deducted from the Gross amount. However, when they encash it, they expect it to be calculated based on Basic + DA. How will this logic match up?
I strongly support all others who have said that Leave should be encashed from the Gross salary.
Thank you.
From India, Coimbatore
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Thank you for the information.
One thing people are not understanding is that when they take leave, they want to have their one day salary deducted from the Gross amount. However, when they encash it, they expect it to be calculated based on Basic + DA. How will this logic match up?
I strongly support all others who have said that Leave should be encashed from the Gross salary.
Thank you.
From India, Coimbatore
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
SC -PF judgment on No PF on Leave encashment.doc
EPFO Circular Leave Encashment.jpg