I have been assigned to prepare the F&F for a resigned employee. Below, our details are given. I need help to calculate leave encashment applicable:
Name of employee: XXX
Date of Joining: 03/01/2017
Last Working Date: 28/02/2019
Basic Salary: 13,500
Gross Salary: 27,000
PF: 3600
Medical Reimbursement: 440
February '19 Month Days Worked: 24 (no leaves taken)
Leave Balance: PL: 8 / CL: 6 / SL: 6 (At the start of the financial year, we give PL-8, CL & SL-6. The employee's leaves were used by December 2018, so no leaves were carried forward for the year 2019)
Request you to please share step-by-step calculation with a brief explanation.
From India, Delhi
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24Name of employee: XXX
Date of Joining: 03/01/2017
Last Working Date: 28/02/2019
Basic Salary: 13,500
Gross Salary: 27,000
PF: 3600
Medical Reimbursement: 440
February '19 Month Days Worked: 24 (no leaves taken)
Leave Balance: PL: 8 / CL: 6 / SL: 6 (At the start of the financial year, we give PL-8, CL & SL-6. The employee's leaves were used by December 2018, so no leaves were carried forward for the year 2019)
Request you to please share step-by-step calculation with a brief explanation.
From India, Delhi
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There is no explicit ruling in shops or factories on the method of computation of leave encashment. If you have mentioned the encashment rule, whether encashed, how much, at what rate, etc., in the appointment order or HR policy, then it would be simple and straightforward to pay.
Depending on company practice, the payment computation can differ. Paying at Basic or paying at Gross are in practice.
From India, Bangalore
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Depending on company practice, the payment computation can differ. Paying at Basic or paying at Gross are in practice.
From India, Bangalore
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Hello Consultme,
Thank you for your response. Could you please confirm the amount of leave encashment payable to the respective employee based on their Basic salary, as this is the process followed in our organization.
Thanks and Regards,
Akash Sharma
From India, Delhi
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Thank you for your response. Could you please confirm the amount of leave encashment payable to the respective employee based on their Basic salary, as this is the process followed in our organization.
Thanks and Regards,
Akash Sharma
From India, Delhi
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