Hi All, For calculating leave encashment do we need to consider 30 days in a month or 22 days? Kindly help me out. Need clarity on this.
From India, Bengaluru
From India, Bengaluru
In respect of employees whose salary does not exceed the statutory minimum wages notified by the government the average wages for any purpose including leave encashment should be monthly salary divided by 26. In respect of others, you can divide it by 30 also. But when you divide the monthly salary by 30, it should not fall below the statutory minimum daily wage.
Note that while calculating the amount of gratuity payable, it should be 26 days and not 30 days taken as divisor.
From India, Kannur
4249Note that while calculating the amount of gratuity payable, it should be 26 days and not 30 days taken as divisor.
From India, Kannur
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
EPFO Circular Leave Encashment.jpg