Gratuity Valuation - CiteHR
Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
dear, will company add the bonus amount in ctc of the employee?
12 leaves are Privileged leaves and can be encashed at the year end. It is cumulative and it can go on accumulating upto 30 days.
As per factory act max leave that can be accumulated is 30 and above which all get en cashed. 1 el is given for 20 days working,so normally in a year it cums around 15. If an employee needs to take leave then he can take leave n if he dont need need then he can keep them. But when the accumulated leaves goes beyond 30 then the org. En cash the rest leaves.
It also depends upon the company policy. Some org keep it 60 or 90 days. So if their is some leave policy in ur org. Then u can check it also.

As kalpna rightly said 1Pl is given for every 20 working days which may come out to apps 18.25(365/20) but to avoid the complexity of how many days were working and how many non-working, companies directly give 21 days or 30 days depending on the company policy. This can also be given as 1.75 or 1.5 days per month which gets accumulated every month in employees PL account.

Company is bound to give the minimum leave as per the order but the no of leaves that can be carried forwarded does not have a limit. So it is at the sole discretion of management of the company to define how many leaves should be carried forwarded and how many enchased. Since PLs are liability on the company’s account, some company prefer to motivate their employees to enchase their leaves at the end of calendar year.

In my current company the policy is that, out of every 30 pl credited in the employees account 15 have to be availed and rest 15 will have to be carried forwarded. the maximum accumulation of this pl is 300 days. This has two positive effects

1. Employee will try not to avail 15 leaves so will be present in the company

2. After 20 years in same company his PL accumulation will be 300. Now at the time of retirement this pl will be a big financial help to the employee since the calculation of entire 300 pl will be done on his current ctc which will be much much more then what he was getting 20 yrs back.

is the rental payment excluded from income tax?
can i exclude my family medical expenses from income tax?
and which are the expenses excluded from income to pay tax in inda?
please tell me what are the way to reduce to pay income tax.

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co™