Recruitment, Induction, Handling Grievances,
The practice which we are following for calculating leave encashment is as under:
(Basic /30 + DA/26) * No. of leaves
(Basic /26 + DA/26) * No. of leaves
The reason for calculating leaves differently is because staff are paid monthly salary while workers are paid daily wages.
If still any query revert back.
22nd January 2007 From India, Pune
23rd January 2007 From India, Delhi
Under the Factories Act calculation for leave shallbe divided by 26 days and payment should be on avg daily earnings i.e. not only Basic +DA (Full day salary). Further Factories Act does not show any difference between leaves calculation to workman/manager as Factory Act is applicable to Manager. Pl read the definition of employee under the Factory Act and also the defnition of wages.
29th September 2008 From India, Guwahati
31st July 2010 From India, Angul
Wage is defined as total amount including ALL alowances apart from dearness allowance. The number of days has to be less than 30 days as holidays/ days not worked needs to be excluded.
Employees are referred as workers. Wage includes even foodgrain amount ! So basic salary is not recognised by the act.
Leave encashment is to be done per wages (total per day and average for last few months)
1st April 2016 From India, undefined