Dear Seniors,
I need a clarity on encashment of Paid Leaves in F&F. Do we need to calculate on the basic or on gross? suppouse if 25000 is the gross salary of an employee and he have 20 paid leaves while exit, in F&F do we need to pay him 16,667 ((25000/30)*20) or 6,667 ((45%*25000)/30)*20))
Please suggest me.
Thanks,
Raam..
From India, Bangalore
1I need a clarity on encashment of Paid Leaves in F&F. Do we need to calculate on the basic or on gross? suppouse if 25000 is the gross salary of an employee and he have 20 paid leaves while exit, in F&F do we need to pay him 16,667 ((25000/30)*20) or 6,667 ((45%*25000)/30)*20))
Please suggest me.
Thanks,
Raam..
From India, Bangalore
depends on company policy... but basically calculated on basic salary, The formula for earned leave encashment is
Basic Salary / 26 * Nos of Earned Leave Balance.
But you can take Gross Salary instead of Basic, if your company policy allowing that.
From India, Delhi
Basic Salary / 26 * Nos of Earned Leave Balance.
But you can take Gross Salary instead of Basic, if your company policy allowing that.
From India, Delhi
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
SC -PF judgment on No PF on Leave encashment.doc
EPFO Circular Leave Encashment.jpg