Hi all,
I need to calculate the End of Service Benefit for a leaver at my firm. He has a balance of 23 working days and let's say his salary is $10,000 to make it easy. Any ideas on how to calculate the compensation for his leave balance?
Thank you,
From United Arab Emirates, Dubai
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I need to calculate the End of Service Benefit for a leaver at my firm. He has a balance of 23 working days and let's say his salary is $10,000 to make it easy. Any ideas on how to calculate the compensation for his leave balance?
Thank you,
From United Arab Emirates, Dubai
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What do you mean by a Leaver? Do you mean to say he is resigning or being terminated? If so, he should be given his full and final which includes the following:
1. His monthly salary (depending on the days he worked. Since you mention he has leave credits, ideally it would be a full month unless he worked for a partial duration).
2. Balanced leave to be encashed (depending on the company policy and laws of your country).
3. If he is liable to pay anything to the company, the same is deducted from his pay.
We usually have a leave encashment practice on basic and DA of the employees. Many also encash it on gross. As I said, it would depend on the governance laws applicable in your country and the guidance and policies provided by your company.
From India, Mumbai
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3811. His monthly salary (depending on the days he worked. Since you mention he has leave credits, ideally it would be a full month unless he worked for a partial duration).
2. Balanced leave to be encashed (depending on the company policy and laws of your country).
3. If he is liable to pay anything to the company, the same is deducted from his pay.
We usually have a leave encashment practice on basic and DA of the employees. Many also encash it on gross. As I said, it would depend on the governance laws applicable in your country and the guidance and policies provided by your company.
From India, Mumbai
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Hi Ankita,
Thank you for the reply. I meant to say that he has resigned. My actual question is how much money exactly the 23 working days would amount to if his salary is $10,000. I am unsure if you are familiar with the distinction between working days and calendar days in our leave policy. We recently transitioned from a calendar days system to a working days system, which is why I want to ensure that I am calculating the leave days correctly.
From United Arab Emirates, Dubai
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Thank you for the reply. I meant to say that he has resigned. My actual question is how much money exactly the 23 working days would amount to if his salary is $10,000. I am unsure if you are familiar with the distinction between working days and calendar days in our leave policy. We recently transitioned from a calendar days system to a working days system, which is why I want to ensure that I am calculating the leave days correctly.
From United Arab Emirates, Dubai
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