hi, I wanted to know as per indian law balance prevelliage leave will be encashment when we leave / resign the company. regards Manish L Kotian
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From India
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Yes absolutely.. Balance PL/EL will be encashed on the last Basic Salary. Regards Hemant Agarwal
From India, Faridabad
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12From India, Faridabad
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I also have some confusion about the calculation of encashment of leave, whether it will be on basic plus DA or on gross. In my opinion, it should be on the gross salary instead of basic if there is a concept of CTC. But if there is no concept of CTC, then it may be on basic plus DA, and no one will raise an objection.
Senior members like RN Khola and Malik, etc., please clarify the same.
From India, Delhi
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Senior members like RN Khola and Malik, etc., please clarify the same.
From India, Delhi
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As Hemanth said, even in our company leave encashment is done on the last drawn BASIC+DA. However, if an employee takes excess leave then the recovery is done on the Gross salary. Giri
From India, Bangalore
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From India, Bangalore
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Hi,
Most of the companies follow the system to calculate the leave encashment based on the last drawn basic salary. This is because the CTC includes PF, gratuity, which are independent components with their own calculations as per the law. Therefore, the basic salary is considered the primary factor for calculating leave, medical benefits, and bonuses. Some companies may also include DA.
Hope this clarifies.
Regards,
Gayatri
From India, Madras
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Most of the companies follow the system to calculate the leave encashment based on the last drawn basic salary. This is because the CTC includes PF, gratuity, which are independent components with their own calculations as per the law. Therefore, the basic salary is considered the primary factor for calculating leave, medical benefits, and bonuses. Some companies may also include DA.
Hope this clarifies.
Regards,
Gayatri
From India, Madras
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Basically PL is paid in cash to employee on the basis oof (basic + DA).It may be paid on Gross Salary depend on company. Regards Sandeep Kumar
From India, Delhi
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From India, Delhi
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Hi,
As per our company practices, encashment of PL would be based on your last basic salary drawn. If there are excessive leaves, they will be deducted from the gross salary. Could you please let me know what is as per company/labour law? This will help clear my concepts as per statutory requirements.
Thanks,
Anu
From India, New Delhi
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As per our company practices, encashment of PL would be based on your last basic salary drawn. If there are excessive leaves, they will be deducted from the gross salary. Could you please let me know what is as per company/labour law? This will help clear my concepts as per statutory requirements.
Thanks,
Anu
From India, New Delhi
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Not necessarily. As per the law (Factories Act, I presume), there is no accumulation over 30 days allowed. Please check. However, leave for the part of the year will have to be encashed. Also, you should check your company's HR policy.
From India, Mumbai
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From India, Mumbai
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