Is it advisable to pay leave with wages every month for contract labour?

I want to confirm the exact rule for the Contract labour Leave encashment - Is it advisable to pay leave with wages every month for contract labour?
Also what would be the exact calculation base for the same.

Dear Pravin
I am having the same problem in this regard.
pls let me know whenever you would get any suggetion or feedback from the seniors.
will be thankful to you.
Mayur

The problem occuring is
few people are giving it annually
Few companies are giving Monthly
Some are following 5.76 % of BASIC+DA
Some give on the basis of the perday payment including the all salary emoulment
Which would be the EXACT
Also we need to have the correct supporting document for which ever we are following
Regards
Pravin

Dear Pravin,
To pay EL encashment, the worker has to work for 240 days in the year. As such you can calculate the EL @ 1 leave for every 20 days and can be paid in January, for every completed year.
Maximum EL would be 15 days in a year and calculation is monthly wages divided by 30 and multiply with no of eligible leaves for that year.
This shows in Factory Act.
AVGN Vara Prasad.

We have to follow the system which is more beneficial to workmen. Since the tenure of contract workmen is uncertain, and even ceases even before eligibility period of 240 days it is better to reimburse 1.5 days wages per month with monthly wages and reflect in wage register and it is nothing wrong. Even the eligibility period of 240 days is being recomended to reduce to 90 days in the coming amendment in Factories Act.

Dear All
There is no specific period to pay EL encashment . It can be paid in any month as co wish most probable companies will pay during march to show it the end of accounts.
EL is not maximum of 15 days it is to be min 15 days max employers wish.You can show upto 30 days of leave credit in the register. calculation is as follows eg basic + da/26 * no of el encashment.
Basic 5000+DA 500 = 5500/26*30 the figure will be the encashment amount. and for that mandatory 240 days let me post in next

Dear Pravin,
you know very well that every rule & regulation is same under annual leave with pay for permanent & contact labor also.
& as per factory act 1948 , EL is calculated after 240 days & i will be given to max three time in the calender year.
& in case of encashment is under..
1- terminate
2- resigned
3- death
4- superannuation
regards,
nagendra

dear all u all r not giving right answer plz never tell anyone wrong answer i m teellling u the right answer
under C&L abolition act the conrtacter must pay the leave amount to every employee
which will b calculated for the calander year and payable in January only at any cost otherwise contractor will be penelized.
amount must be calculatef on EL Workingdays/20*last basic drawn/26(under factory act)
under shop act total el are 15 calculation same as factory act
other 14 leave cl and el last basic/26*14

Dear All and mahesh ji
Thanks for sharing
Ihe intension behind paying monthly LEashment is that the contract labour get more in his hand
My query was is this acceptable as per teh law
Also are we sure that we need to take the BASIC+DA Only or all the contents
Regards
Pravin

Dear Praveen and other amount of leave ie payable only and only in january and if u pay monthly it is not under cl act or any other law
the employee can only avail leave in every month not can get any amount
it is payable only on basic+da but baic + da must b equal or more than minimum wage in the state.
any other query dicuss me by telephonic