Hi all,
Based on the information provided by all of you, I have constructed the following salary structure and encashment calculation. Please correct me if I am wrong.
Salary Structure (8000/- per month salary)
Components | Monthly | Yearly
---|---|---
BASIC | 4000 | 48000
HRA | 1600 | 19200
Conveyance allowance | 1200 | 14400
Other allowance | 1200 | 14400
Gross pay | 8000 | 96000
8 PLs are encashable, i.e., Encashment calculation: 4000/26*8 = 1230.76
Thank you.
From India, undefined
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5Based on the information provided by all of you, I have constructed the following salary structure and encashment calculation. Please correct me if I am wrong.
Salary Structure (8000/- per month salary)
Components | Monthly | Yearly
---|---|---
BASIC | 4000 | 48000
HRA | 1600 | 19200
Conveyance allowance | 1200 | 14400
Other allowance | 1200 | 14400
Gross pay | 8000 | 96000
8 PLs are encashable, i.e., Encashment calculation: 4000/26*8 = 1230.76
Thank you.
From India, undefined
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Hi,
As per the Shops & Establishment Act, AP, is concerned. As per the Act [Shops & Establishment] on page 17, it is defined as follows:
(4) Every employee who has served for a period of not less than two hundred and forty days during a continuous period of twelve months in any establishment shall be entitled to encashment of eight days of leave with wages that have accrued to him under subsection (1) during the subsequent period of twelve months. The employer shall pay the employee the wages for the leave so encashed by the employee within a week of receipt of the application for such encashment from the employee.
Wages here have to be construed as full salary and not just on the basic as calculated by you unless, of course, the state government has specifically mentioned as such. Therefore, it will be 8000/26*8, which is just double the amount that you had mentioned.
Thanks and Regards
From India, Hyderabad
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As per the Shops & Establishment Act, AP, is concerned. As per the Act [Shops & Establishment] on page 17, it is defined as follows:
(4) Every employee who has served for a period of not less than two hundred and forty days during a continuous period of twelve months in any establishment shall be entitled to encashment of eight days of leave with wages that have accrued to him under subsection (1) during the subsequent period of twelve months. The employer shall pay the employee the wages for the leave so encashed by the employee within a week of receipt of the application for such encashment from the employee.
Wages here have to be construed as full salary and not just on the basic as calculated by you unless, of course, the state government has specifically mentioned as such. Therefore, it will be 8000/26*8, which is just double the amount that you had mentioned.
Thanks and Regards
From India, Hyderabad
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but sir in some sites, they stating the calculation only on basic. encashment is calculated on basic or gross salary ?
From India, undefined
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From India, undefined
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Hi,
It boils down to the state in which you are working and the rules to be followed - either the Shops & Establishments Act or the Factories Act as the case may be. Unless it is specifically mentioned, it can only be assumed in favor of the employees. In this case, the gross salary has to be taken.
Thanks and Regards,
From India, Hyderabad
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It boils down to the state in which you are working and the rules to be followed - either the Shops & Establishments Act or the Factories Act as the case may be. Unless it is specifically mentioned, it can only be assumed in favor of the employees. In this case, the gross salary has to be taken.
Thanks and Regards,
From India, Hyderabad
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Dear Satish Chandra,
Assuming the employee is not encashing their leave but is availing 8 days of leave, will you pay the salary in full for those days or only the basic salary for those 8 days? The answer lies within.
Regarding your query, some companies have a policy that leave cannot be encashed but must be availed. To limit the encashment of PL/EL, the employer specifies in the policy that encashment will be based on the basic salary only. Please verify if such a policy is in place.
With regards,
[Your Name]
From India, Ahmadabad
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Assuming the employee is not encashing their leave but is availing 8 days of leave, will you pay the salary in full for those days or only the basic salary for those 8 days? The answer lies within.
Regarding your query, some companies have a policy that leave cannot be encashed but must be availed. To limit the encashment of PL/EL, the employer specifies in the policy that encashment will be based on the basic salary only. Please verify if such a policy is in place.
With regards,
[Your Name]
From India, Ahmadabad
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