Payroll, Policy Drafting, Employee Relation,
Dgm - Hr And Admin
Manager - Human Resources
Hr & Admin Officer
C S SHUKLA
1. If an employee is taking leave without pay : The amount dedcuted will be same as amount paid whle leave taken with pay. It is Gross Pay what companies take.
2. If an employee go for encashment of leave: This is followed as per letter of appointment / rules of company. Generally companies consider Basic pay in case of encashment of leave, which is unfair but is a fact.
Trust the above information is useful.
13th July 2010 From India, Coimbatore
I will explain you with example.
The gross ( BASIC+ HRA+ CONV+ Spcl Allow+.....) = 20000 p.m
Per day it is 666.66/-
if the employee has worked for 29 days then I will pay him 666.66*29 =19333.33/-
Hence, its on gross & not on basic, coz when taken on gross your basic , pf , is attracted automatically.PT will not be affected.
I hope i have tried to make it simple & clear.
13th July 2010 From India, Bangalore
Total days in the month :31 days
Weekly Off Days : 5 days
Holidays ; 1 day
Days Present : 20 days
LWP : 5 days
Salary for him will be made for only 26 days.
14th July 2010 From India, Mumbai
LWP or LOP is usually on the gross salary.
Some org such as ours, considering as a welfare measure, do have a leverage on this wherein for LOP within 5 days, the Basic and DA is only deducted and other components such as HRA, conv etc are not deducted.
Good Luck !!!
14th July 2010 From India, Hyderabad
Gross Salary : 8000/-
Days in a month : 30
Working Days in a month : 26
So Gross Salary would be : 8000/30*26 = 6933.33 or 6934/-
Now Salary Break-up will be calculated on gross salary of 6934/- for the respective month .
M : 9717388549
14th July 2010 From India, New Delhi
As far as LWP is concerned, it is treated as absent from duty and in that case deduction is made from gross salary except HRA because an employee has to pay house rent for full month either he is on leave with pay or without pay.
16th May 2011 From India, Lucknow
An employee has been on LWP for 12 days.
His salary will be prepared for only 28 days.
LWP will be calculated on the same basis as is for days for which the employee will be paid salary for the month. Yes, it is the Gross Wages/Salary on which LWP will be calculated.
17th May 2011 From India, Mumbai
I would like to know about the calculation of LWP. As i had a discussion it with a labour consultant and came to know that it should be deducted only on the basic salary but right now i am calculating it on the gross salary.
Kindly clarify the issue.
1st August 2011 From India, Bhopal
Please reply the following urgent queries:
1. If once's leave without pay from June 20, 2012 continues till the 02 July 2012, will the salary deduction of the day of July 01 that is Sunday be made or not. Please confirm, during the said leave without pay period, will the salary deductions be for 11 days (excluding 2 Sundays) or 13 days (including 02 Sundays)? Please give reference of the rule, if any.
2. What are the common rules for salary deductions of leave without pay across industry in India especially in Transport or Logistics industry in Mumbai/Maharashtra?
2. Does the salary deduction of leave without pay will inclusive of the sundays, holidays which are suffix, prefix and falls between leave without pay period? I mean, will the deduction be based only on the working days absence or including sundays or other holiday?
3. While doing such deductions, is per day salary is calculated as per 31 or 30 days?
Waiting for your valuable responses...
14th August 2012 From India, Mumbai