hai all i think it is better to caliculate on gross because if we given LOP to a employee we deducted his salary based on gross so in encashment case we caliculate the amount on gross. if we caliculated based on gross employee will get benifit,if we caliculated based on Basic employeer will get benifit(pay low amount to employee).good employeer always looking for employee benifit so we caliculate based on gross. formule of this is gross salary*no of days encashed/no of days(26 or 30) based on no of days we run the payroll
From India, Visakhapatnam
6From India, Visakhapatnam
Hi,
Having gone through views of many , it tempts me to bring to you one more dimension . We are talking about earned leave , which means after putting in service during a calender year provided one is confirmed , he / she earned leave to be enjoyed in terms of rules govering Leave Policy . Normally Leave policy does state about leave enjoyment as well as encashment . Different statue namely Factories Act, Standing Orders of each state , Shop and Establishment Act etc. get attracted depending upon class of employees - such as worker , staff and others . I shall definitely provided more insight into these provision after I return from my tour .
I wish to now attract your attention to a fact that earned leave when enjoyed one gets full payment on monthly gross but on encashing it everyone mentions about Basic in some case , in others , Basic + DA and while many speak about Gross Monthly . Please review this position and then proceed further about it being right or wrong .I shall extend vital points say in another 15 days after my return.
Wish you all best of spirits and warm regards to all members.
Rajpal
From India, Mumbai
Having gone through views of many , it tempts me to bring to you one more dimension . We are talking about earned leave , which means after putting in service during a calender year provided one is confirmed , he / she earned leave to be enjoyed in terms of rules govering Leave Policy . Normally Leave policy does state about leave enjoyment as well as encashment . Different statue namely Factories Act, Standing Orders of each state , Shop and Establishment Act etc. get attracted depending upon class of employees - such as worker , staff and others . I shall definitely provided more insight into these provision after I return from my tour .
I wish to now attract your attention to a fact that earned leave when enjoyed one gets full payment on monthly gross but on encashing it everyone mentions about Basic in some case , in others , Basic + DA and while many speak about Gross Monthly . Please review this position and then proceed further about it being right or wrong .I shall extend vital points say in another 15 days after my return.
Wish you all best of spirits and warm regards to all members.
Rajpal
From India, Mumbai
Pf is not attracted on the Leave emcashment as per the latest SC ruling, copy of the same is enclosed herewith.
From India, Delhi
From India, Delhi
Hi Rakesh,
As per order of supreme court, It is not required to deduct P.F. contribution on Leave Encashment amount right now.The amount which was already deposited, will not refund.You can ask to P.F. department for further settlement in your future P.F.deposit.
Deepak Raj
New Delhi
9868941534
As per order of supreme court, It is not required to deduct P.F. contribution on Leave Encashment amount right now.The amount which was already deposited, will not refund.You can ask to P.F. department for further settlement in your future P.F.deposit.
Deepak Raj
New Delhi
9868941534
Dear Deepak, But As per Factory Act it should be calculated on Basic+DA including all other allownces execpt Bonus & Pension. If you have any notification/judgement copy, pls send. regds, Lalit
From India
From India
Dear All, Just clarify me.. on the above topic.. As per my experience & knowledge leave encashment calculated on Basic Salary and leaves to be taken of CL & PL & not SL(Sick leave)..is it correct... pls help me out on the same..thnx & regds,khursheed
ps reply in My id :
From India, Mumbai
ps reply in My id :
From India, Mumbai
There are many ways it is decided. In my first employment it was calculated on Basic +DA and 15% premium was given and at the same time one cannot encash more than 2weeks this is to ensure that people go on leave for some days. Only at the time of resignation or Retirement entire leave balance is considered for encashment.
Hi surhita, Hope this helps u, We calculate leave encashment by : Basic x No. of days PL balance / 26. Here we donot encash SL and Cl. Only PL can be encashed accumulated upto 90 days. Thanks, Smita
From India, Pune
From India, Pune
Funny discussion. every body know that EL will be encashed only on basic, then why we all try to gyrate this matter. Rgds/Jitender
From India, New Delhi
From India, New Delhi
Dear All,
Please be infomed you all, Leave encasment as per Factories act 1948 and Shops and commerical act we have to calculate on baiss of Graoss earning, most of the compnies are following Baisc+VDA
Actually Bais + VDa we have to consider only while Gratuity working,
For Example
Employee has gone for a leave then we are deducting from his Gross earning, ?? No
we are deduction his full earnings, therefore if you all can read out the act then you will understand it, as per as act considered leave encashment is caluclated on basis gross wages, so kindly inform the same to your respective industry,
Thanking you
Yogeesh
From India, Bangalore
Please be infomed you all, Leave encasment as per Factories act 1948 and Shops and commerical act we have to calculate on baiss of Graoss earning, most of the compnies are following Baisc+VDA
Actually Bais + VDa we have to consider only while Gratuity working,
For Example
Employee has gone for a leave then we are deducting from his Gross earning, ?? No
we are deduction his full earnings, therefore if you all can read out the act then you will understand it, as per as act considered leave encashment is caluclated on basis gross wages, so kindly inform the same to your respective industry,
Thanking you
Yogeesh
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.
PF Contribution on Leave Encashment - Clarification by EPFO.pdf
EPFO Circular Leave Encashment.jpg