You must have maintained leave records of that particular employee for all years. So the current balance remaining of Paid leaves compared to maximum paid leaves that can be encashed as per your leave policy whichever is lesser is the amount to be encashed.
Encash procedure depends from company to company but generally companies encash leaves on Basic amount.
So, per month basic amount furthur divided to per day basic amount and multiplied by number of paid days to be encashed. That is your Paid leaves encashment Amount.
Dear Sachin ,
Find below the PL Calculation Matrix ::::
(A) Calculation of Total Number of PLs / ELs for each year
Total Number of Days worked in a year / 365 *Number of PLs (As per HR Policy)
Eg : Total Number of Days worked in a year = 240
Number of PLs = 15
240/365 * 15 = 9.8 = 10 (Round off)
(B) Calculation of Amount for PL to be paid with Full n Final for each year
(A) / 30 * Basic Salary
Eg : Basic Salary = Rs.15000
10 / 30 *15000 = Rs.4999 = 5000 (Round Off)
I hope above is helpful for you.
My Dear Friend,
I agree with Mr. Sumit Kumar Saxana.
The formula is last drawn salary (basic+da)/26 * no. of el balance.
I would like to add only one thing here that if at the end of year EL balance in a/c of that Employee was greater than 30, EL balance in excess of 30 had lapsed and you will pay him only for 30 EL in this year.
We can't carry forward more than 30 EL to next year. You should had paid him than only for EL excedding 30 ELs.
For example, suppose now in that employees a/c there are 40 old ELS balance. You can pay him only for 30 ELs.
Further, here I am doubtful about one thing that either we can't carry forward more than 30 ELs to next year or we can't have more than 30 Els (old+new EL) in any employees a/c at any time during the year.
I would request HR experts to clear my this doubt.
Modi Ashok Kumar
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