why we calculate the Basic+ DA for PL encashment not for gross?
From India, Coimbatore
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1From India, Coimbatore
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Ideally it has to be as per Company Policy . Some company also has gross.
From India, Pune
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From India, Pune
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Dear HR PL purely comes under Factories Act. We have to give the reimbursement as per ACT. Go through the FA. Alphonse Rtd. HR Pondy
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Dear Ms. Lathamani,
Strictly speaking, pay, salary, or wages for any wage period are to be taken as a single package only. When an employee goes on any authorized leave, the entire package has to be paid as leave salary. If any deduction is to be made, it can only be from the head of allowances that are paid to the employee to defray special expenses related to the job or the monetary compensation for the arduousness of any operation involved in the job. For instance, if an employee goes on E.L for 10 days, you may deduct his lunch allowance or heat allowance, if paid. However, would you deduct HRA proportionately? The same analogy applies to encashment as well.
Since the encashment of EL/PL during the normal course of employment is not statutorily recognized, some organizations formulate such a leave policy treating encashment of EL/PL as a concession bestowed by them on their own accord. A fair and correct method of calculating the surrender value of such leave is based on the gross salary minus the exceptions mentioned above only.
From India, Salem
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Strictly speaking, pay, salary, or wages for any wage period are to be taken as a single package only. When an employee goes on any authorized leave, the entire package has to be paid as leave salary. If any deduction is to be made, it can only be from the head of allowances that are paid to the employee to defray special expenses related to the job or the monetary compensation for the arduousness of any operation involved in the job. For instance, if an employee goes on E.L for 10 days, you may deduct his lunch allowance or heat allowance, if paid. However, would you deduct HRA proportionately? The same analogy applies to encashment as well.
Since the encashment of EL/PL during the normal course of employment is not statutorily recognized, some organizations formulate such a leave policy treating encashment of EL/PL as a concession bestowed by them on their own accord. A fair and correct method of calculating the surrender value of such leave is based on the gross salary minus the exceptions mentioned above only.
From India, Salem
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