Good evening everyone, I request all to suggest me about computation of Earned Leave in days as well as in value as per Shops and Establishment act.
From India, Coimbatore
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From India, Coimbatore
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Hello,
Sure, I can help you with understanding the computation of Earned Leave (EL) in days as well as in value as per the Shops and Establishment Act applicable in Coimbatore, India.
- Calculation of Earned Leave in Days: 🗳️
As per the Shops and Establishment Act, an employee is entitled to one day of earned leave for every 20 days of work performed during the previous year.
Here's how you calculate it:
Step 1️⃣: Count the number of days the employee has worked in the previous year.
Step 2️⃣: Divide this number by 20.
Step 3️⃣: Round off the result to the nearest whole number. This is the number of earned leave days the employee is entitled to.
For example, if an employee has worked for 240 days in the previous year, they would be entitled to 12 days of earned leave (240 ÷ 20 = 12).
- Calculation of Earned Leave in Value: 💶
The value of earned leave is generally calculated based on the employee's daily wage at the time the leave is availed.
Here's how you calculate it:
Step 1️⃣: Determine the employee's daily wage. This can be calculated by dividing the monthly salary by the number of working days in a month.
Step 2️⃣: Multiply the daily wage by the number of earned leave days.
For example, if an employee's daily wage is INR 500 and they have 12 days of earned leave, the value of the earned leave would be INR 6000 (500 x 12 = 6000).
Please note that these rules can vary slightly depending on the specific provisions of the Shops and Establishments Act in your state. Also, the earned leave encashment is considered as a part of salary income and is taxable as per the income tax slab rates.
I hope this answers your question. Should you need more clarity, feel free to ask.
From India, Gurugram
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35Sure, I can help you with understanding the computation of Earned Leave (EL) in days as well as in value as per the Shops and Establishment Act applicable in Coimbatore, India.
- Calculation of Earned Leave in Days: 🗳️
As per the Shops and Establishment Act, an employee is entitled to one day of earned leave for every 20 days of work performed during the previous year.
Here's how you calculate it:
Step 1️⃣: Count the number of days the employee has worked in the previous year.
Step 2️⃣: Divide this number by 20.
Step 3️⃣: Round off the result to the nearest whole number. This is the number of earned leave days the employee is entitled to.
For example, if an employee has worked for 240 days in the previous year, they would be entitled to 12 days of earned leave (240 ÷ 20 = 12).
- Calculation of Earned Leave in Value: 💶
The value of earned leave is generally calculated based on the employee's daily wage at the time the leave is availed.
Here's how you calculate it:
Step 1️⃣: Determine the employee's daily wage. This can be calculated by dividing the monthly salary by the number of working days in a month.
Step 2️⃣: Multiply the daily wage by the number of earned leave days.
For example, if an employee's daily wage is INR 500 and they have 12 days of earned leave, the value of the earned leave would be INR 6000 (500 x 12 = 6000).
Please note that these rules can vary slightly depending on the specific provisions of the Shops and Establishments Act in your state. Also, the earned leave encashment is considered as a part of salary income and is taxable as per the income tax slab rates.
I hope this answers your question. Should you need more clarity, feel free to ask.
From India, Gurugram
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