Dear All,
Please Note, Leave Encashment is done on the basis of Gross salary not the Basic +Da
Kindly go through the New notification of Factroies act 1947 and Companies act 1956, a
Yes genererally we are practising Calculating on the Basis of Basic, some companies Basic+DA actually this wrong, if we read the leave encashment procedure as per the act it is stated, on the basis of Gross components, which is encashed when employee is leaving the organization, due to resignation, etc,
Request all to refer once Base act so that, you will undersatnd more clarity on this.
Thanking You
Yogeesh S. T
From India, Bangalore
Please Note, Leave Encashment is done on the basis of Gross salary not the Basic +Da
Kindly go through the New notification of Factroies act 1947 and Companies act 1956, a
Yes genererally we are practising Calculating on the Basis of Basic, some companies Basic+DA actually this wrong, if we read the leave encashment procedure as per the act it is stated, on the basis of Gross components, which is encashed when employee is leaving the organization, due to resignation, etc,
Request all to refer once Base act so that, you will undersatnd more clarity on this.
Thanking You
Yogeesh S. T
From India, Bangalore
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
EPFO Circular Leave Encashment.jpg