Can you please clarify about yearly calculation of Earned Leave Encashment. We have taken gross salary / 26 X no. of days. Is it correct ?
From India, Hyderabad
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3From India, Hyderabad
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bottom line is : Basic Salary / 26 * Nos of Earned Leave Balance. But you can take Gross Salary instead of Basic, if your company policy allowing that. thanks amit jain 9873436660
From India, Delhi
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From India, Delhi
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Hi there,
In order to help you calculate the encashment of annual leave, I need you to provide the following information:
- According to your Company Policy, is your annual leave calculated in calendar days or working days? This distinction is crucial when calculating.
- Different positions may have varying annual leave entitlements.
- When calculating benefits and entitlements, do you use the basic salary or gross salary? This can make a significant difference.
- What is your organization's policy on carrying forward annual leave?
- I assume you carry out this exercise by 31st December.
- Please specify the date on which you begin the calculation.
- Total number of annual leave days earned.
Please send me this information, and I will provide you with the matrix for calculating your annual leave encashment.
From Oman, Muscat
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In order to help you calculate the encashment of annual leave, I need you to provide the following information:
- According to your Company Policy, is your annual leave calculated in calendar days or working days? This distinction is crucial when calculating.
- Different positions may have varying annual leave entitlements.
- When calculating benefits and entitlements, do you use the basic salary or gross salary? This can make a significant difference.
- What is your organization's policy on carrying forward annual leave?
- I assume you carry out this exercise by 31st December.
- Please specify the date on which you begin the calculation.
- Total number of annual leave days earned.
Please send me this information, and I will provide you with the matrix for calculating your annual leave encashment.
From Oman, Muscat
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Dear Member,
We are not supposed to encash the earned leaves yearly under any Act. However, if the employee does not have any objection and is interested in getting encashment of EL yearly, and if the employer also wants to pay, then in my opinion, your method of calculation is not objectionable.
Opinions/comments submitted as requested.
With Regards,
R.N.Khola
From India, Delhi
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We are not supposed to encash the earned leaves yearly under any Act. However, if the employee does not have any objection and is interested in getting encashment of EL yearly, and if the employer also wants to pay, then in my opinion, your method of calculation is not objectionable.
Opinions/comments submitted as requested.
With Regards,
R.N.Khola
From India, Delhi
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Hi,
If the company has a policy of providing privilege leave or earned leave during the calendar year, they may opt for the same. However, the Factories Act does not insist that the employer pays such encashment. It is not a statutory obligation on the part of the employer to pay such encashment to the employee.
Regards,
Devarajan
From India, Madras
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If the company has a policy of providing privilege leave or earned leave during the calendar year, they may opt for the same. However, the Factories Act does not insist that the employer pays such encashment. It is not a statutory obligation on the part of the employer to pay such encashment to the employee.
Regards,
Devarajan
From India, Madras
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Dear MEMBER,
For earned leave encashment, we should take the basic salary (not gross salary) for a month with 30 days. For example, a person who has worked a total of 120 days is eligible to receive 6 days for encashment. The basic salary for a day should be determined and then multiplied by 6 days.
Basic salary Rs. 800 X 6 days = Rs. 4800/-
Boopathi.N
09894190187
From India, Coimbatore
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For earned leave encashment, we should take the basic salary (not gross salary) for a month with 30 days. For example, a person who has worked a total of 120 days is eligible to receive 6 days for encashment. The basic salary for a day should be determined and then multiplied by 6 days.
Basic salary Rs. 800 X 6 days = Rs. 4800/-
Boopathi.N
09894190187
From India, Coimbatore
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Please refer to the Act which is applicable to your establishment. Then, refer to your policy that pertains to leaves. If there is no company policy on leave, refer to the model standing order.
Thank you.
Yours sincerely,
Koti
From India, Coimbatore
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Thank you.
Yours sincerely,
Koti
From India, Coimbatore
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As per my knowledge wages/26* No of Days (PL). Here wages include BAsic+DA +other special pays. Regards, P K Prasad
From India
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From India
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Dear Friend basic salary/30*No of days encashment - for staff & workmen (Basic Salary+da+vda)/30*nos days encashment
From India, Pune
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From India, Pune
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x