Dear seniors,
I am in the hospitality sector (Under KSCE-1961) and I wanted to clarify the leave encashment confusion regarding whether it is paid on gross or Basic+DA. Under the act, it is defined that wages mean Basic+DA. However, in my last assignment, we were paid based on the Gross salary, whereas my present company suggests paying on BA+DA. Kindly advise.
Thank you.
From India, Bangalore
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9I am in the hospitality sector (Under KSCE-1961) and I wanted to clarify the leave encashment confusion regarding whether it is paid on gross or Basic+DA. Under the act, it is defined that wages mean Basic+DA. However, in my last assignment, we were paid based on the Gross salary, whereas my present company suggests paying on BA+DA. Kindly advise.
Thank you.
From India, Bangalore
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Yes, it is correct. The rule states that leave encashment should be given on BASIC+DA and the calculation should be based on 26 days. However, it also depends on the company's policy. If the company chooses to pay based on Gross, that is their own policy. The company can also choose to pay on Gross salary.
From India, Alwar
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From India, Alwar
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Dear Murali,
Encashment of leave is only on Basic & D.A as per Act. If the organization is willing to encash the whole salary including allowances, then it is fine (up to the policy of the company). Keep in mind the calculation should be based on 26 days.
It is a good practice to pay leave on gross wages because sometimes we adjust EL into employee absenteeism (if the employee wants to adjust his/her Earned leave from the leave account). Then the adjustment is on gross one day wages against one day leave.
From India, Gurgaon
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Encashment of leave is only on Basic & D.A as per Act. If the organization is willing to encash the whole salary including allowances, then it is fine (up to the policy of the company). Keep in mind the calculation should be based on 26 days.
It is a good practice to pay leave on gross wages because sometimes we adjust EL into employee absenteeism (if the employee wants to adjust his/her Earned leave from the leave account). Then the adjustment is on gross one day wages against one day leave.
From India, Gurgaon
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Hi, Please find attached the format for Leave Encashment. Zakir
From India, Delhi
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From India, Delhi
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Dear Member,
Encashment of Leave is enforced as per the provisions of the Factories Act, in which the term of wages is clearly defined as Basic + DA. However, if the employer desires to pay EL on gross wages, it will definitely be nice and helpful to the employees.
Regards,
PVVB KUMAR
From India, Kakinada
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Encashment of Leave is enforced as per the provisions of the Factories Act, in which the term of wages is clearly defined as Basic + DA. However, if the employer desires to pay EL on gross wages, it will definitely be nice and helpful to the employees.
Regards,
PVVB KUMAR
From India, Kakinada
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Dear Team members What is the procedure of calculation EL within Shops & Establishment Act as I am working in hospitality industry. Kindly advice. Regards Rajiv Madan 98102 97179
From India, Bangalore
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From India, Bangalore
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Daer sir , Please refer Leave Encasement rule mentioned in Maharashtra State’s Redymade garment house. Regards Pappu Mishra
From India, Pune
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From India, Pune
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Dear Sir i want know to know if a person has got expired how to claim for his privilege leave encashment. please give the further details.
From India, Mumbai
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From India, Mumbai
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