Hi All,
I need to calculate the End of Service Benefit for a Leaver at my Firm. He has a balance of 23 working days balance and lets say his salary is 10,000 to make it easy. Any idea on how to calculate the compensation for his Leave balance.
Thank you,
From United Arab Emirates, Dubai
I need to calculate the End of Service Benefit for a Leaver at my Firm. He has a balance of 23 working days balance and lets say his salary is 10,000 to make it easy. Any idea on how to calculate the compensation for his Leave balance.
Thank you,
From United Arab Emirates, Dubai
What do you mean by a Leaver?
Do you mean to say he is resigning or being terminated???
If so, he should be given his full and final which includes the following:
1. His monthly salary (depending on the days he worked. Since you mention he has leave credits, ideally it would be full month unless he worked for partial duration)
2. Balanced leave to be encashed (depending on the company policy and laws of your country.)
3. If he is liable to pay anything to the company, same is deducted from his pay.
We usually have a leave encashment practise on basic and da of the employees. Many also encash it on gross. As I said, it would depend on the governance laws applicable in your country and the guidance and policies provided by your company.
From India, Mumbai
377Do you mean to say he is resigning or being terminated???
If so, he should be given his full and final which includes the following:
1. His monthly salary (depending on the days he worked. Since you mention he has leave credits, ideally it would be full month unless he worked for partial duration)
2. Balanced leave to be encashed (depending on the company policy and laws of your country.)
3. If he is liable to pay anything to the company, same is deducted from his pay.
We usually have a leave encashment practise on basic and da of the employees. Many also encash it on gross. As I said, it would depend on the governance laws applicable in your country and the guidance and policies provided by your company.
From India, Mumbai
Hi Ankita,
Thank you for the reply. I meant by Leaver that he is resigned. My question in fact is how much money exactly the 23 Working days would be if his salary is 10,000. I am not sure if you are familiar with the Working days vs Calendar Days leave policy. We just switched from Calendar to Working days which is why I want to make sure I am calculating the leave days right.
From United Arab Emirates, Dubai
Thank you for the reply. I meant by Leaver that he is resigned. My question in fact is how much money exactly the 23 Working days would be if his salary is 10,000. I am not sure if you are familiar with the Working days vs Calendar Days leave policy. We just switched from Calendar to Working days which is why I want to make sure I am calculating the leave days right.
From United Arab Emirates, Dubai
Again it depends on the laws of your country.
In India, we have laws that states there should be 1 rest day after maximum of 6 work days and so most salaried employees get paid holidays on Sundays.
Thus irrespective of the working days we give salary on calendar days.
However if you practice payment on working days, great.
Now i need following details to compute the pay.
Monthly gross = 10,000
Working days of company = 23
Days of presence = ???
Balance Leave on his credit = ??? (for leave encashment)
The formula is
( Monthly gross / Working days of company) = per day salary
Thus salary for the present days = Per day salary * Present days
Leave Encashment = Per day salary * No. of balance leaves on his credit
I hope this was of help
From India, Mumbai
In India, we have laws that states there should be 1 rest day after maximum of 6 work days and so most salaried employees get paid holidays on Sundays.
Thus irrespective of the working days we give salary on calendar days.
However if you practice payment on working days, great.
Now i need following details to compute the pay.
Monthly gross = 10,000
Working days of company = 23
Days of presence = ???
Balance Leave on his credit = ??? (for leave encashment)
The formula is
( Monthly gross / Working days of company) = per day salary
Thus salary for the present days = Per day salary * Present days
Leave Encashment = Per day salary * No. of balance leaves on his credit
I hope this was of help
From India, Mumbai
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