Earned Leaves when consumed are calculated on Gross Salary basis, however while en cashing the balance EL normally Basic+DA is used as base.
From India, Pune
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12From India, Pune
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Dear Harry,
EL = Basic + DA/26 * Remaining days, as simple as this. But if an employee is on leave, you deduct the payment from gross, not only from basic, so pay them based on Gross. For you, the formula will be: EL = Gross/26 * remaining days. CL and SL should never be encashed.
Vikas Sharma
Jodhpur
From India, Jodhpur
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EL = Basic + DA/26 * Remaining days, as simple as this. But if an employee is on leave, you deduct the payment from gross, not only from basic, so pay them based on Gross. For you, the formula will be: EL = Gross/26 * remaining days. CL and SL should never be encashed.
Vikas Sharma
Jodhpur
From India, Jodhpur
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Dear Harry,
If your question pertains to "workman," the EL should be considered in the Basic+DA+and allowances. In short, the amount he will get (wage for a day) if he avails that leave.
In the case of non-workmen (executives), the company can have its own policy on whether to pay on Basic only or on the total CTC, depending on the objective - whether you want employees to avail more leaves to help them maintain work-life balance or if you want them to put more days for the company and pay for it to motivate them.
Hope this helps you.
Regards,
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
From India, Mumbai
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If your question pertains to "workman," the EL should be considered in the Basic+DA+and allowances. In short, the amount he will get (wage for a day) if he avails that leave.
In the case of non-workmen (executives), the company can have its own policy on whether to pay on Basic only or on the total CTC, depending on the objective - whether you want employees to avail more leaves to help them maintain work-life balance or if you want them to put more days for the company and pay for it to motivate them.
Hope this helps you.
Regards,
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
From India, Mumbai
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(Fact Checked)-The user reply is partially correct. For workmen, EL should be calculated on Basic+DA+allowances. For non-workmen, companies can choose to pay on Basic or total CTC based on policy. (1 Acknowledge point)
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Dear All: EL is to be encashed on Basic only & not on gross. It is in line with IT Act 1961, wherein exemption is given only on encashment done on Basic. Rgds Dxion, Tata Trent, Pune
From India, Mumbai
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From India, Mumbai
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Dear All, Kindly advise whether EL is calculated on the basis of number of days in year or 30 days. Thanxs & Regards C.M.Mohla
From India, Delhi
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From India, Delhi
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It depends on your policy. If you are allowing strictly as per FA Act, it's one day for every 20 worked days. If it is an establishment in Kerala, there are flat 12 EL for an employee who has worked in the previous year for 240 days. This can be accumulated to 24 days. In factories, this 240-day criteria is also applicable.
Varghese Mathew
9961266966
From India, Thiruvananthapuram
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Varghese Mathew
9961266966
From India, Thiruvananthapuram
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(Fact Checked)-The user's reply contains accurate information regarding the calculation of earned leave (EL) based on the Factories Act and specific rules for establishments in Kerala. No corrections needed. (1 Acknowledge point)
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Dear Colleagues,
I agree with our seniors that EL/PL Encashment is based on Basic+DA, whether working or ex-employee. In other words, EL/PL = Basic+DA / 26 * No. of Days.
Additionally, EL/PL availed/leave taken is calculated on Gross Salary, which means an employee working within a company has taken leave(s) for personal exigencies. This calculation is expressed as EL/PL = Gross Salary / 30 * No. of Days.
I hope I am not mistaken; however, if I am, I kindly request our seniors to correct me and share your knowledge with us.
Thank you.
From India, Mumbai
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I agree with our seniors that EL/PL Encashment is based on Basic+DA, whether working or ex-employee. In other words, EL/PL = Basic+DA / 26 * No. of Days.
Additionally, EL/PL availed/leave taken is calculated on Gross Salary, which means an employee working within a company has taken leave(s) for personal exigencies. This calculation is expressed as EL/PL = Gross Salary / 30 * No. of Days.
I hope I am not mistaken; however, if I am, I kindly request our seniors to correct me and share your knowledge with us.
Thank you.
From India, Mumbai
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Hi! Can anybody tell me from which time is E.L. should be counted, from the date of appointment or from the date of confirmation? Adhip Sen_gupta
From India, Patna
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From India, Patna
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(Fact Checked)-The Earned Leave (EL) should be counted from the date of appointment, not confirmation. (1 Acknowledge point)
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Again a lot depends on Co policy.Better to count it from DOJ but allow to avail it after confirmation. Varghese Mathew
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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EL should always be counted from the date of appointment as per all statutory provisions be it Factoriest act or Shops and Establishment act or Mines act or Palanatations Act etc
From India, Chennai
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From India, Chennai
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(Fact Checked)-EL should be counted from the date of appointment as per various statutory provisions like Factories Act, Shops and Establishment Act, etc. (1 Acknowledge point)
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(Fact Checked)-The information provided in the user reply is correct. (1 Acknowledge point)