Dear All,
Can anybody suggest to me how to calculate earned leave:
1) Is it based on basic salary or gross salary?
2) We give 15 EL days in a calendar year. If it is proportional, how can we calculate if an employee is absent for 60 days?
3) In cases where there is no salary structure but EL has been given in advance, the gross salary is affected. When we give encashment, the amount paid will be less than the advance.
Regards,
Lalit
From India, Indore
Acknowledge(0)
Amend(0)
Can anybody suggest to me how to calculate earned leave:
1) Is it based on basic salary or gross salary?
2) We give 15 EL days in a calendar year. If it is proportional, how can we calculate if an employee is absent for 60 days?
3) In cases where there is no salary structure but EL has been given in advance, the gross salary is affected. When we give encashment, the amount paid will be less than the advance.
Regards,
Lalit
From India, Indore
Acknowledge(0)Amend(0)
Calculation of EL Total working days (i.e worked by an employee in a Calender Year ) 20 Regards Sanjeev Kwatra
From India, Delhi
Acknowledge(0)Amend(0)
11From India, Delhi
Acknowledge(0)Amend(0)
Dear Friends,
For the calculation of ELs: Total working days (Physical presence only) excluding Sundays, National & Festival Holidays, and any leave days divided by 20. (i.e., an adult employee who works 20 days in a month will be eligible for 1 day as EL).
Regards,
PBS KUMAR
9848499629
From India, Kakinada
Acknowledge(0)Amend(0)
For the calculation of ELs: Total working days (Physical presence only) excluding Sundays, National & Festival Holidays, and any leave days divided by 20. (i.e., an adult employee who works 20 days in a month will be eligible for 1 day as EL).
Regards,
PBS KUMAR
9848499629
From India, Kakinada
Acknowledge(0)Amend(0)
I would like to add one thing to the reply of Mr. PBS Kumar: the employee who was present for 240 days in the last calendar year is only eligible for EL. For the purpose of calculating present days, weekly offs, national and festival holidays, and leaves must be considered.
Narendra
From India, Mumbai
Acknowledge(0)Amend(0)
Narendra
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Narendra ji,
Your answer is true that taking into consideration the EL calculation, 240 days are mandatory. However, as per Section 79, Explanation-2 of the Factories Act, it states that "The leave admissible under this sub-section shall be exclusive of all holidays whether occurring during or at either end of the period of leave." Regarding other leaves such as CL/SLs, they generally should not be clubbed with the ELs. (PLEASE REFER TO THE BOOK OF HL. KUMAR'S "A BOOK ON LEAVES, ABSENTEEISM").
Regards,
PBS KUMAR
From India, Kakinada
Acknowledge(0)Amend(0)
Your answer is true that taking into consideration the EL calculation, 240 days are mandatory. However, as per Section 79, Explanation-2 of the Factories Act, it states that "The leave admissible under this sub-section shall be exclusive of all holidays whether occurring during or at either end of the period of leave." Regarding other leaves such as CL/SLs, they generally should not be clubbed with the ELs. (PLEASE REFER TO THE BOOK OF HL. KUMAR'S "A BOOK ON LEAVES, ABSENTEEISM").
Regards,
PBS KUMAR
From India, Kakinada
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x