Caculation Of Per Day Salary For EL

Dear All
This is regarding encashment of EL to resigned employee details are given below
EL =16
Current Basic Salary= 18000
Date of Leaving - 25/02/2013
Kindly suggest me how to calculate per day salary & EL amount
Thanks & Regards
Dipti Sharma

Dear Dipti,
What is the EL year applicable in your company ? In some companies it is as per calender year, if it so, please check whether you have calculated earnings EL from January to 25th Feb 2013.
If your the balance is correct as mentioned by you then EL Encasement shall be calculated as per the below calculation -
Basic /30*No. of EL balance
in your case
18000
_____ X 16 = 9600/-
30
TY
Ajay
9654592555

Hi Dipti,
In general leave encashment of earned leaves are calculated on their Basic Salary. This is encashed by dividing the monthly basic by 30.

Every year has 365 days and every fourth year is a leap year having 366 days. Therefore the exact formula for calculation of salary for purpose of calculation of EL should be Monthly Salary multiply by 12 and divide by 365.25. We are using the same for payment of earned leave as well as overtime, if any.