Deduction Procedute Of Leave Without Pay

Dear Seniors,
Please let me know that if an employee likes to take leave 15 days a month without pay , How I will deduct the amount? Is the deduction on basic or gross? If an employee takes leave full month without pay, what will be the procedure? Please suggest.
Thanks

Dear kamrul
You can deduct the salary as per normal rules for eg: for the month of March - you can show attendance as 15 days only and calculate as per the normal calculations.
Deduction will be on all the components for eg:
You can deduct full month salary by showing reason for leave..
Usually long leave is permitted only in case of emergency. Company has right to refuse leave sanction.
And if company has already given leave , the employee can be shown as absent for full month.
No problem in showing as 0 present for the month.
Hope I have answered your query, please reply for further assistance.
Regards,
Sanjukta

Hello Kamrul,

I am presuming that the LWP - Leave Without Pay is due to the fact that the concerned employee does not have leave/s in his account. Or it could be the outcome of a situation wherein his superior is not approving his leave/s inspite of he having it in his account (which may attract disciplinary action). However, in either case it would mount to LWP.

Whether it is for company workers (Blue collars) or staff (White collars), the deduction will always be on gross and not on basic salary.

For Blue collars, some company pay the wages on the basis of daily rates and hence you should calculate the LWP on the basis of the total working days in that particular month / wage - period (This LWP period could spread around to the 2nd month aswell). White collars (Staff category) are paid on basis of monthly salary and hence you should calculate their LWP on the basis of the total number of days in that month (30 or 31 or 28/29 for February).

Having said so, I have seen some companies having a different internal policy wherein the LWP are calculated on the basis of the actual number of working days in the month. So, the comments from each of the experts is correct in one way or the other.

Cheers,

A.B.

Dear Sanjukta,
Thanks. All components mean gross salary? if so then I have to deduct on gross, not on basic. Right?
Thanks again for suggestion.
Regards,
Kamrul

Dear A.B,
Thanks for your suggestion. I have got the point from you that whether deduction will be on gross or on basic salary.
Thanks again,
Kamrul Hasan

Hi Kamrul,

Please find the Fixed breakup and monthly Salary calculation as follows for the month of March - present for 15 days.

Basic ---- 6,900

House Rent Allowance ---- 2,760

Medical Allowance ---- 1,000

Conveyance ---- 2,000

Other Allowance ---- 3,287



Gross ---- 15,947 (Sum of all above)

EPF ---- 828

ESI

P. tax ----- (amount to be deducted as per the slab)

Net Salary ---- 15,119 (Gross - Pf - ESI - prof. tax)

Company Share:

PF ---- 828

ESI -

CTC ---- 16,775

Calculation for salary

Present days - 15

Basic ---- 3,338.71 (Fixed Basic / 31 * 15)

House Rent Allowance ---- 1,335.48 (Fixed HRA / 31 * 15)

Medical ---- 483.87 (Fixed Medical / 31 * 15)

Conveyance ---- 967.74 (Fixed convy. / 31 * 15)

Other Allowance ---- 1,590.48 (Fixed Other All. / 31 * 15)



Gross Salary ---- 7,716.29 (Sum of all above)

EPF ---- 400.65 (Basic for the month * 12/100)

ESI ---- - (if the gross is equal or below 15000, Earned Gross * 1.75/100)

P. tax ----- (amount to be deducted as per the slab)

Net Salary ---- 7,315.65 (Gross - PF - ESIC - P. tax)

Hope now it is clear to you.

You can contact me for more clarification on my email id - [Login to view]

Regards,

Sanjukta