I am very new in HR field , can anyone help me out on leave encashment calculation. I mean Is it a days pay or it is calculated on Basic pay.
From India, Mumbai
1From India, Mumbai
Dear Aditi,
Generally Leave encashment is done on the day's salary i.e. basic+HRA+other allowances but some company's calculate it on basic salary. In that case it should be mentioned in their office rules or employment contract.
Regards
Abhishek
From India, New Delhi
Generally Leave encashment is done on the day's salary i.e. basic+HRA+other allowances but some company's calculate it on basic salary. In that case it should be mentioned in their office rules or employment contract.
Regards
Abhishek
From India, New Delhi
Dear Aditi, Well you have to deduct PF on the leave encashment given to your employee. With regards, Anita K.
From India, Mumbai
From India, Mumbai
Dear,
Leave encashment is applied as per the policy of the company and calculated on Basic salary of the employee at the time of application. If DA ia applicable than the leave encashment amount is calculated on Basic + DA divided by 30 x nos of leave applied for encashment. The applied leave in nos and nos of application in a year governed by the policy of the individual companies.
The 12% PF to be calculated and deposited in PF account with company contribution on encashment amount and again it depends on the rules min-max ceilings of PF. This is must at all time of leave encashment wether thru voluntary application for encashment or at the time of resignation/retiring (F&F).
regard,
Vinmind
Leave encashment is applied as per the policy of the company and calculated on Basic salary of the employee at the time of application. If DA ia applicable than the leave encashment amount is calculated on Basic + DA divided by 30 x nos of leave applied for encashment. The applied leave in nos and nos of application in a year governed by the policy of the individual companies.
The 12% PF to be calculated and deposited in PF account with company contribution on encashment amount and again it depends on the rules min-max ceilings of PF. This is must at all time of leave encashment wether thru voluntary application for encashment or at the time of resignation/retiring (F&F).
regard,
Vinmind
Dear All
I am working with a ltd company as Sr. HR- Executive. Today i am facing the new problem.
The problem is that a employee of our company has gone to holiday on 25th May, 2007 Saturday and he had joined on 11th june, 2007 monday and he is not eligible for EL leave because our company policy is a employee will be eligible for the EL after 240 days of joining so i have deducted his 10 days salary that mans 10 days of June month has been without pay. But employee say that 10 June is Sunday it is not including in without pay because he has been join the company on Monday 11th
so please help me any one that 10th june will be with pay or without pay
Regards,
R/P/Dixit
From India, New Delhi
I am working with a ltd company as Sr. HR- Executive. Today i am facing the new problem.
The problem is that a employee of our company has gone to holiday on 25th May, 2007 Saturday and he had joined on 11th june, 2007 monday and he is not eligible for EL leave because our company policy is a employee will be eligible for the EL after 240 days of joining so i have deducted his 10 days salary that mans 10 days of June month has been without pay. But employee say that 10 June is Sunday it is not including in without pay because he has been join the company on Monday 11th
so please help me any one that 10th june will be with pay or without pay
Regards,
R/P/Dixit
From India, New Delhi
Hi Dixit
I guess this depends on company to company.
Like few IT company's which do not work on weekends (sat & sun) do not deduct pay for sat and sunday. For eg , if he has taken leave from sat and returned back on work on next monday , he will not be paid only for weekdays ie, his salary will get deducted for monday to Friday. he will be paid for sat and sundays as it is been considered public holiday.
I think you can have a word on this with your company management also.
From India, Mumbai
I guess this depends on company to company.
Like few IT company's which do not work on weekends (sat & sun) do not deduct pay for sat and sunday. For eg , if he has taken leave from sat and returned back on work on next monday , he will not be paid only for weekdays ie, his salary will get deducted for monday to Friday. he will be paid for sat and sundays as it is been considered public holiday.
I think you can have a word on this with your company management also.
From India, Mumbai
Hi, Aditi
Leave Encashment is generally calculated, in Government/PSUs and in a good number of provate organisation as per the formula give below:
Basic Pay + DA /26 multiplied by No. of days being encashed.
You may also be aware that this amount is treated as wages in the hands of the employee and PF contribution is to be made from the amount, while disbursing the same.
Bye.
Karath AK
From India, Gurgaon
Leave Encashment is generally calculated, in Government/PSUs and in a good number of provate organisation as per the formula give below:
Basic Pay + DA /26 multiplied by No. of days being encashed.
You may also be aware that this amount is treated as wages in the hands of the employee and PF contribution is to be made from the amount, while disbursing the same.
Bye.
Karath AK
From India, Gurgaon
hi
10th june will be with pay. In my opinion based on long working experience in many organsation, 10th june is not without pay. U can say his leave application was till 9th June(saturday)
Had he not joined back on monday then sunday would have been a leave without pay in this case.
i hope this clarifies
akriti
From India, Chandigarh
10th june will be with pay. In my opinion based on long working experience in many organsation, 10th june is not without pay. U can say his leave application was till 9th June(saturday)
Had he not joined back on monday then sunday would have been a leave without pay in this case.
i hope this clarifies
akriti
From India, Chandigarh
Dear Karath;
You are absolutely right.
EL encashment is wage under E.P.F. Act. and contribution is payable, if the concerned person is member of P.F. Scheme.
Calculation based on 26 days (average Wages) not on days in a month, it also may be verified on the basis of Income Tax Act.
EL Encashment = (WAGES /26)* NO. OF EL ENCASHABLE.
ENCASHMENT DURING THE SERVICE IS SUBJECT OF INCOME TAX DED. AND EXEMPTED AT THE TIME OF RETIREMENT.
Thansk
Mohd. Arif Khan
You are absolutely right.
EL encashment is wage under E.P.F. Act. and contribution is payable, if the concerned person is member of P.F. Scheme.
Calculation based on 26 days (average Wages) not on days in a month, it also may be verified on the basis of Income Tax Act.
EL Encashment = (WAGES /26)* NO. OF EL ENCASHABLE.
ENCASHMENT DURING THE SERVICE IS SUBJECT OF INCOME TAX DED. AND EXEMPTED AT THE TIME OF RETIREMENT.
Thansk
Mohd. Arif Khan
Dear Mr. Dixit,
I think its all depend on co. to co. Normally in ltd. co., to avail any kind of paid holiday,weekly off employee has to work one day before or after such PH or W/O, if he is present on 11 June then he is eligible for the W/o on 10th June.
suppose, If Employee has been absent/ on leave from 10th to 20th August, then he is not eligible for Paid Holiday of 15th August.
With regards,
Anita K.
From India, Mumbai
I think its all depend on co. to co. Normally in ltd. co., to avail any kind of paid holiday,weekly off employee has to work one day before or after such PH or W/O, if he is present on 11 June then he is eligible for the W/o on 10th June.
suppose, If Employee has been absent/ on leave from 10th to 20th August, then he is not eligible for Paid Holiday of 15th August.
With regards,
Anita K.
From India, Mumbai
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