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Hi, different companies calculate it in different way. most used ways are as follows:- 1) 1 day basic salary X no. of ELs 2) (1 day basic salary + 1 day TA + 1 day DA) X no. of ELs
From India, Delhi
From India, Delhi
Why do you need to calculate encashment of earned leave? Are you an HR professional or a management student?
Generally, it depends on the company policy. In some companies, encashment is based on basic and dearness allowances only, while in others, it is based on gross salary.
In my previous company, if you had 30 days of leave, you would be paid for 34 days (26 days equal to 1 month plus 4 days).
I believe this clarifies your query.
From India, Bhubaneswar
Generally, it depends on the company policy. In some companies, encashment is based on basic and dearness allowances only, while in others, it is based on gross salary.
In my previous company, if you had 30 days of leave, you would be paid for 34 days (26 days equal to 1 month plus 4 days).
I believe this clarifies your query.
From India, Bhubaneswar
Hi, Leave encashment calculation differs for each company: Calculation: (Basic Salary + DA)/30*Earned leave
From India, Chennai
From India, Chennai
Dear, The earned leave encashment caliculation formula as per factories act Basic+DA*No.of eligible ELs/26
From India, Secunderabad
From India, Secunderabad
Hello,
As per the Factories Act, it is:
(Basic+DA) / 26 * Number of Encashment Days.
However, this is flouted by most companies for their benefit as they recalibrate the rule as follows:
(Basic+DA) / 30 * Number of Encashment Days.
Trust this is clear.
Warm Regards,
SR Banaji
Resolve Business Solutions
From India, Bangalore
As per the Factories Act, it is:
(Basic+DA) / 26 * Number of Encashment Days.
However, this is flouted by most companies for their benefit as they recalibrate the rule as follows:
(Basic+DA) / 30 * Number of Encashment Days.
Trust this is clear.
Warm Regards,
SR Banaji
Resolve Business Solutions
From India, Bangalore
Companies have their own policies for leave encashment as some companies do not allow leave encashment. Therefore, if you are in HR, it is better to decide how to calculate it yourself.
If you want examples for calculation, some companies encash pending leaves by paying 50% of the daily salary, while others only encash leaves if 50% of the allowed leaves are pending.
From India, Lucknow
If you want examples for calculation, some companies encash pending leaves by paying 50% of the daily salary, while others only encash leaves if 50% of the allowed leaves are pending.
From India, Lucknow
Leave encashment should be done on gross salary instead of basic salary, calculation formula should be Gross Salary/26 * no. of leave/leaves. Thanks & Regards, From, Sumit Kumar Saxena
From India, Ghaziabad
From India, Ghaziabad
In calculation for Leave Encashment (Gross/26*no. of leave) what does 26 mean? Thank You
From India, undefined
From India, undefined
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x