Hi!
Is there any policy reg leave incashment in case of increment. Can somebody pls tell me that In case of leave encashment we need to calculate the (EL/PL )amount on arrears of increments or not?
Waiting for your positive response.
Thanks & Regards,
Vartika
From India, Delhi
Is there any policy reg leave incashment in case of increment. Can somebody pls tell me that In case of leave encashment we need to calculate the (EL/PL )amount on arrears of increments or not?
Waiting for your positive response.
Thanks & Regards,
Vartika
From India, Delhi
Hi,
Please refer to the definition of leave with wages which is nothing but EL/ PL.
On any given particular day what ever is the salary payable to the empployee the same applies to his accumulated leave as well.
For example Let us assume that the employee is having 30 days leave balance on bewteen 1/1/2010 and 30/6/2010 and his salary for the puprose of leave encashment is 10000/-pm.
If his salary is revised retrospectively from 1/4/2010 to 11000/-pm then the same becomes applicable for leave encashment as well from 1/4/2010. This does not require a separate policy as this becomes specific requirement.
Kind regards
Dayanand L Guddin
From Singapore, Singapore
29Please refer to the definition of leave with wages which is nothing but EL/ PL.
On any given particular day what ever is the salary payable to the empployee the same applies to his accumulated leave as well.
For example Let us assume that the employee is having 30 days leave balance on bewteen 1/1/2010 and 30/6/2010 and his salary for the puprose of leave encashment is 10000/-pm.
If his salary is revised retrospectively from 1/4/2010 to 11000/-pm then the same becomes applicable for leave encashment as well from 1/4/2010. This does not require a separate policy as this becomes specific requirement.
Kind regards
Dayanand L Guddin
From Singapore, Singapore
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
EPFO Circular Leave Encashment.jpg