shaik
1

Dear All, Kindly let me know How to calculate Notice Period pay for the employees - is it from Basic Salary or from gross salary.
In my company an employee leaves from the organization he/she supposed to serve 3 months notice period. If they have Earned Leaves we use to deduct from that.
How to calculate Notice Period pay? Kindly send me if anyone has a policy for the notice period.
Regards

From India, Coimbatore
malikjs
167

dear
for deducting or paying in lieu of notice period is not clear in law.you can have the same policy of give and take .if you pay on basic deduct on basic and pay on gross than deduct on gross.however you can clear this in appointment letter.in my last company it was clear in appointment letter and it was mentioned that it will be paid or deducted on gross.
tks
j s malik

From India, Delhi
Madhu.T.K
4193

Normally the period of notice and payment in lieu of notice will be provided in the Standing Orders of the company. Similarly, clear definition to the word 'pay or salary' will also be given in the Standing Orders. In the absence of standing orders, pay shall mean basic salary plus dearness allowance. Where ever references have been made about notice and compensation in the Industrial Disputes Act, the term is used to denote basic and dearness allowance. As such lay off wage means half the daily average of basic + DA, retrenchment compensation means 15 days wages plus DA for every completed year of service, and so on. Under Factories Act, Shops and Establishments Act or Plantations Labour Act, the pay for encashment of earned leave (annual leave with wages) means basic + DA. Therefore, in the context of notice pay also the pay shall have the meaning of basic salary + DA. In case you do not pay DA, then pay means basic salary only. This shall be the pay the employee should be asked to pay for leaving and at the same time this shall be the pay the employer should pay if he wants to send an employee out.

Regards,

Madhu.T.K

From India, Kannur
Chidambaraguru
please clear me correctly if we pay in the notice period we pay both EPF also
From India, Tirunelveli
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