Dear Sir,
We are paying EL-Encashment to our employees for 2008 & 2009 (2 years). Now the question is, should EL Encashment be calculated based on the current gross salary drawn, i.e., 2009 December salary, or the respective year's gross salary, i.e., 2008 EL for 2008 December gross & 2009 for 2009 gross? Which one is correct as per government norms?
Please guide me, sir.
Thanking You,
Ramesha
From India, Bangalore
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We are paying EL-Encashment to our employees for 2008 & 2009 (2 years). Now the question is, should EL Encashment be calculated based on the current gross salary drawn, i.e., 2009 December salary, or the respective year's gross salary, i.e., 2008 EL for 2008 December gross & 2009 for 2009 gross? Which one is correct as per government norms?
Please guide me, sir.
Thanking You,
Ramesha
From India, Bangalore
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We are paying EL-Encashment to our employees for 2008 & 2009 (2 years). Now the question is: should EL Encashment be calculated on the basis of the current gross salary drawn, i.e., 2009 December salary, or the respective year's gross salary, i.e., 2008 EL for 2008 December gross & 2009 for 2009 gross? Which one is correct as per government norms?
Please guide me, sir.
Thank you, sir.
Ramesha
From India, Bangalore
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Please guide me, sir.
Thank you, sir.
Ramesha
From India, Bangalore
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Dear Sir,
We are paying EL Encashment to our employees for 2008 and 2009 (2 years). Now the question is: should EL Encashment be calculated based on the current gross salary drawn, i.e., the December 2009 salary, or the respective year's gross salary, i.e., the 2008 EL for 2008 December gross and 2009 for 2009 gross? Which one is correct as per government norms?
Please guide me, sir.
Thank you, Sir.
Ramesha
From India, Bangalore
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We are paying EL Encashment to our employees for 2008 and 2009 (2 years). Now the question is: should EL Encashment be calculated based on the current gross salary drawn, i.e., the December 2009 salary, or the respective year's gross salary, i.e., the 2008 EL for 2008 December gross and 2009 for 2009 gross? Which one is correct as per government norms?
Please guide me, sir.
Thank you, Sir.
Ramesha
From India, Bangalore
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Dear Ramesha,
You are to consider the current salary of the employee when he is accepting the EL encashment and you are offering it.
With Regards, R.N.Khola
QUOTE=Ramesha.A;996198]
We are paying EL-Encashment to our employees for 2008 and 2009 (2 years). Now the question is, is EL Encashment to be calculated on the basis of the current gross salary drawn, i.e., 2009 December salary, or respective year gross salary, i.e., 2008 EL for 2008 December gross and 2009 for 2009 gross? Which one is correct as per government norms? Please guide me, sir.
Thanking You, Sir
Ramesha
[/QUOTE]
From India, Delhi
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422You are to consider the current salary of the employee when he is accepting the EL encashment and you are offering it.
With Regards, R.N.Khola
QUOTE=Ramesha.A;996198]
We are paying EL-Encashment to our employees for 2008 and 2009 (2 years). Now the question is, is EL Encashment to be calculated on the basis of the current gross salary drawn, i.e., 2009 December salary, or respective year gross salary, i.e., 2008 EL for 2008 December gross and 2009 for 2009 gross? Which one is correct as per government norms? Please guide me, sir.
Thanking You, Sir
Ramesha
[/QUOTE]
From India, Delhi
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Dear Ramesh,
Please calculate the current wage rate. Also, note that the accumulation of leave should not exceed 30 days in any case.
For example, if one of your employees worked 250 days in 2008 and 250 days in 2009, then the total leaves would be 500/20=25, resulting in a total leave balance for that particular employee.
It is subject to your company policy whether you want to encash these leaves now or carry them forward, as you can keep up to 30 leaves in an employee's account.
Best Regards,
Sajid Ansari
From India, Delhi
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Please calculate the current wage rate. Also, note that the accumulation of leave should not exceed 30 days in any case.
For example, if one of your employees worked 250 days in 2008 and 250 days in 2009, then the total leaves would be 500/20=25, resulting in a total leave balance for that particular employee.
It is subject to your company policy whether you want to encash these leaves now or carry them forward, as you can keep up to 30 leaves in an employee's account.
Best Regards,
Sajid Ansari
From India, Delhi
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EL is normally given to an employee based on the leave earned by way of the previous year working. Likewise, the employee can avail leave or accumulate it over the years to a limit as decided upon by the concerned firm or company to be used by the employee in the future for his own purpose. The accumulated EL of an employee becomes a liability for the company. So if the employee decides to encash it, then the future liability of the company or firm decreases. The value of EL is determined based on his Basic Pay and Dearness Allowance (per day basis). Therefore, an employee can encash accumulated EL, say 30 days in a year, if the EL balance is more than 30 days. If it is less than 30 days, then only half the leave in his balance can be encashed. EL encashment is normally referred to as the encashment of leave accumulated (i.e., EL not used) over the years in the entire service period.
From India, Bhilai
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From India, Bhilai
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Hi Leave encashment to be done on the basis of last drawn salary / wage at the time of encashing the leaves. Mohan Rao Manager HR
From India, Visakhapatnam
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From India, Visakhapatnam
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Dear ramesh. You have calculate EL for enchasement based on currenet month gross or Basic salary. Reagrds Kumar
From India, Bangalore
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From India, Bangalore
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Dear Ramesh,
For payment of leave encashment, only the components of basic + DA should be considered, rather than the gross salary. The calculation must be done based on 26 days, instead of 30 or 31 days.
Thanks & Regards,
Sumit Kumar Saxena
9899669071, 0120-4131277
From India, Ghaziabad
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For payment of leave encashment, only the components of basic + DA should be considered, rather than the gross salary. The calculation must be done based on 26 days, instead of 30 or 31 days.
Thanks & Regards,
Sumit Kumar Saxena
9899669071, 0120-4131277
From India, Ghaziabad
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Dear Remesha EL Encashment of 2008 - 2009 both years calculated in gross pay of December 2009 existing salary only siva
From India, Visakhapatnam
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From India, Visakhapatnam
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Dear Friends,
Mr. George has rightly said that EL accumulation or encashment is totally dependent upon the policy of the company, and the rules are generally different for different levels of people. For example, workmen/associates will have EL as per the Factories Act 1946/Certified Standing Orders, whereas Officers/executives generally have a higher number of EL. In some companies, the criteria for granting EL to Officers are based on the total length of service and/or experience in that organization. Thus, there is subjectivity in the practice of allotting EL to employees.
Similarly, encashment also has different connotations. However, the most commonly adopted practice is to encash the accumulated EL with the last drawn salary, which includes only Basic and DA components.
Nirmal
From India, Mumbai
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Mr. George has rightly said that EL accumulation or encashment is totally dependent upon the policy of the company, and the rules are generally different for different levels of people. For example, workmen/associates will have EL as per the Factories Act 1946/Certified Standing Orders, whereas Officers/executives generally have a higher number of EL. In some companies, the criteria for granting EL to Officers are based on the total length of service and/or experience in that organization. Thus, there is subjectivity in the practice of allotting EL to employees.
Similarly, encashment also has different connotations. However, the most commonly adopted practice is to encash the accumulated EL with the last drawn salary, which includes only Basic and DA components.
Nirmal
From India, Mumbai
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Mr. Sumit Kumar,
Why should we consider only 26 days rather than 30 or 31 days for encashment? Moreover, as per the Factories Act, only the gross salary should be considered, but companies still persist with encashing leave based on the basic+DA pay. Correct me if I am wrong.
Regards,
Kangeyan
From India, Madras
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Why should we consider only 26 days rather than 30 or 31 days for encashment? Moreover, as per the Factories Act, only the gross salary should be considered, but companies still persist with encashing leave based on the basic+DA pay. Correct me if I am wrong.
Regards,
Kangeyan
From India, Madras
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Dear Ramesh,
Payment of EL depends on the salary you deduct. In case you deduct Gross Salary for any specific reason (example: LOP, Absent, No Proportionate Leave, etc.), then you have to pay Gross Salary as EL (current Gross Salary). If you deduct basic salary for the above said reasons, then you have to pay EL as per Basic Salary (Current Basic Salary).
Regards,
Krishna T B R
From India, Hyderabad
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Payment of EL depends on the salary you deduct. In case you deduct Gross Salary for any specific reason (example: LOP, Absent, No Proportionate Leave, etc.), then you have to pay Gross Salary as EL (current Gross Salary). If you deduct basic salary for the above said reasons, then you have to pay EL as per Basic Salary (Current Basic Salary).
Regards,
Krishna T B R
From India, Hyderabad
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Hello, i m hr head in a indian multinational co.i need simple help from all of u,is that what is the provision and minimum accumulation of the el/pl for past years in u.p.. Regards anil kumar
From India, Gorakhpur
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From India, Gorakhpur
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Dear Kangeyan,
You are correct that the existing salary would be considered for encashing leave. However, the consideration should be for 26 days only. This is because the calculation of leave should be based on working days, not paid days. Therefore, 26 days should be considered the working days for months with 30 or 31 days, while 24 days should be considered for months with 28 or 29 days.
Thanks & regards,
Sumit Kumar Saxena
9899669071, 0120-4131277
From India, Ghaziabad
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You are correct that the existing salary would be considered for encashing leave. However, the consideration should be for 26 days only. This is because the calculation of leave should be based on working days, not paid days. Therefore, 26 days should be considered the working days for months with 30 or 31 days, while 24 days should be considered for months with 28 or 29 days.
Thanks & regards,
Sumit Kumar Saxena
9899669071, 0120-4131277
From India, Ghaziabad
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Leave Encashment & Salary Calculation.xls x
LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf