Hi All,
Please help me in clarifying if leave calculation is done on the gross or the basic salary? And also if leave encashment is done considering the gross or basic salary of an employee?
Regards,
Jyoti
From India, Bangalore
Please help me in clarifying if leave calculation is done on the gross or the basic salary? And also if leave encashment is done considering the gross or basic salary of an employee?
Regards,
Jyoti
From India, Bangalore
Hi,
Thanks ! But my doubt is if we are deducting leave on gross salary then encashment should also be done on gross. And if we are deducting leave from basic then encashment should also be done on basic. Please let me know if this is the standard procedure followed in the industry.
Regards,
Jyoti
From India, Bangalore
Thanks ! But my doubt is if we are deducting leave on gross salary then encashment should also be done on gross. And if we are deducting leave from basic then encashment should also be done on basic. Please let me know if this is the standard procedure followed in the industry.
Regards,
Jyoti
From India, Bangalore
Hi Jyoti,
Earned Leave can be encashed maximum twice in a financial year with minimum of 10 days at a time without insisting on proceeding on leave subject to the concerned employees keeping a residual leave of minimum of 30 days at credit at the time of encashment of earned leave.
One can keep a maximum of 300 day leave above it you can get an addition with considered as a lapse.
Leave Encashment formula is: -
Leave Encashment = Basic + DA x No. of EL to be encashment
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30
With regards,
RK Sinha
From India, Ludhiana
Earned Leave can be encashed maximum twice in a financial year with minimum of 10 days at a time without insisting on proceeding on leave subject to the concerned employees keeping a residual leave of minimum of 30 days at credit at the time of encashment of earned leave.
One can keep a maximum of 300 day leave above it you can get an addition with considered as a lapse.
Leave Encashment formula is: -
Leave Encashment = Basic + DA x No. of EL to be encashment
-------------
30
With regards,
RK Sinha
From India, Ludhiana
Hi Jyoti,
I can't understand your query, if it is you want to know about the financial deduction when a person takes Half Pay Leave or something else.
Please explain then only I can solve your problem.
With regards
RK Sinha
From India, Ludhiana
I can't understand your query, if it is you want to know about the financial deduction when a person takes Half Pay Leave or something else.
Please explain then only I can solve your problem.
With regards
RK Sinha
From India, Ludhiana
Hi,
As far as Half Day Leave is concerned, it can be calculated according to the formula: -
HPL = 1 / 2 (Basic + DA) x No. of HPL
----------------------
30
Hope your problem is solved now.
with regards,
RK Sinha
[/quote]
From India, Ludhiana
As far as Half Day Leave is concerned, it can be calculated according to the formula: -
HPL = 1 / 2 (Basic + DA) x No. of HPL
----------------------
30
Hope your problem is solved now.
with regards,
RK Sinha
From India, Ludhiana
Dear Sinha ji,
I have gone through your quote 'good'. According to Factories Act. It is not specified for leave encachment, its only at the time of leaving service. And also not clearly mentioned about this much of accumlation etc. In that case some of the managements are not accepted the encashment of leaves accumlated. In that case is there any enactment ?
If so please supply.
Regards,
PBS KUMAR
From India, Kakinada
590I have gone through your quote 'good'. According to Factories Act. It is not specified for leave encachment, its only at the time of leaving service. And also not clearly mentioned about this much of accumlation etc. In that case some of the managements are not accepted the encashment of leaves accumlated. In that case is there any enactment ?
If so please supply.
Regards,
PBS KUMAR
From India, Kakinada
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x