We are trying to establish leave policy according to Karnataka Shops & Establishment act which says employee is eligible for 1 day earned leave for every 20 working days. Kindly clarify whether my below calculation is correct.
So as per the notification below is calculation,
b) 22 working days in a month (4 Sundays & 4 Saturdays weekly off)
22 working days * 12 months = 264 working days in a year
Hence earned leave would be = 264/20 = 13.2 days in a year
We have Saturday and Sunday weekly off. If any employee on paid leaves (PL or BL or SL) or on company established holiday, it is considered for working day. For Example
Employee A: In Jan 2024, worked on from Jan 1st to 31st all working days. Excluding Jan 1st, Jan 15th and Jan 26th as holiday, so their 1 leave will be credited on Jan 31st as their 20 working days will be completed.
Employee B: In Jan 2024, worked on from Jan 1st to 31st all working days. Excluding Jan 1st, Jan 15th and Jan 26th as holiday, additionally he has taken Jan 2nd to Jan 5th Paid leave carried forward from last year. So, their 20 working days will be completed on Feb 7th. 1 leave will be credited on 7th Feb as their 20 working days will be completed.
At the end of the year, both employees will have different balance of accrued earned leaves according to this calculation. Is this right way to calculate or we should have standard 15 or 18 leaves in a year to all.
Also paid leaves and holidays are considered for working days as it is included in 264 working days in a year. Else it will be very less working days.
From India, Nellore
So as per the notification below is calculation,
b) 22 working days in a month (4 Sundays & 4 Saturdays weekly off)
22 working days * 12 months = 264 working days in a year
Hence earned leave would be = 264/20 = 13.2 days in a year
We have Saturday and Sunday weekly off. If any employee on paid leaves (PL or BL or SL) or on company established holiday, it is considered for working day. For Example
Employee A: In Jan 2024, worked on from Jan 1st to 31st all working days. Excluding Jan 1st, Jan 15th and Jan 26th as holiday, so their 1 leave will be credited on Jan 31st as their 20 working days will be completed.
Employee B: In Jan 2024, worked on from Jan 1st to 31st all working days. Excluding Jan 1st, Jan 15th and Jan 26th as holiday, additionally he has taken Jan 2nd to Jan 5th Paid leave carried forward from last year. So, their 20 working days will be completed on Feb 7th. 1 leave will be credited on 7th Feb as their 20 working days will be completed.
At the end of the year, both employees will have different balance of accrued earned leaves according to this calculation. Is this right way to calculate or we should have standard 15 or 18 leaves in a year to all.
Also paid leaves and holidays are considered for working days as it is included in 264 working days in a year. Else it will be very less working days.
From India, Nellore
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x