Leave encashment

sriniammu2000 · #1 (**permalink**) 10-03-2006, 03:00 PM

Hi All,

Can anyone help me please? I would like to know information on the following:

1. Leave encashment on separation (calendar year or working day basis)
2. PF on Leave encashment
(Whether encashment is on Basic Salary only or otherwise & calculated on calendar year basis or working day basis??)

Thanking you in advance,

Best regards,

Srini

swastik73 · #2 (**permalink**) 28-03-2006, 02:36 AM

Dear Srini,

Let me answer your questions one by one:

(1) Leave encashment is usually paid @ 1 day for every 20 days worked. This twenty days is inclusive of NI Act Holidays, Off Day, Legal Strike or Lock out. For more details you can check out the Factories Act, 1948, if yours is a factory. Otherwise Leave is calculated as per rules framed by the Company.
(2) PF is always payable on Leave encashment when paid irrespective of the method used.

I hope I have been able to satisfy you. Please revert in case of difficulty.

Kind Regards,
SC

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