Hi seniors, Have a question. If we have leave encashment on basic salary, then can we have leave deduction also on basic salary only. Is it necesary to have deduction on gross only ?
From India, Mumbai
No. Deductions done only on gross pay. we cant calculate in basic pay for deductions.
Leave salary for the year will be calculated on basic pay. rules plays!!!
almost all the concern are following this pattern!
From India, Chennai
Leave encashment is a facility offered to employees to get monetary benefits out of their accumulated leave. Leave deduction is different as the employee did not work during the period under deduction. Therefore, only gross pay shall be considered. Both cases can not be correlated.
From India, Lucknow
Encashment leave is enforced as specified by Factories Act according to which the wage is defined as Basic & DA whereas the loss of pay is affected on gross salary as per Labour Act.
Hope this is clear
From India, Kakinada