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
21st August 2010 From India, Bangalore