Dear Friends,
I have a query... While calculating PL encashment in FFS of a staff cadre, what do we have to consider: a 26-day month or a 30-day month? Similarly, when calculating Gratuity, should we consider a 26-day month or a 30-day month? What is the legal binding? Please explain.
Nitin
From India, Kolhapur
Acknowledge(0)
Amend(0)
I have a query... While calculating PL encashment in FFS of a staff cadre, what do we have to consider: a 26-day month or a 30-day month? Similarly, when calculating Gratuity, should we consider a 26-day month or a 30-day month? What is the legal binding? Please explain.
Nitin
From India, Kolhapur
Acknowledge(0)Amend(0)
Hi,
Leave encashments are calculated based on Earned/Paid Leave only.
Method of Calculation: Basic Salary per month / 26 * Number of Earned Leaves left. Similarly, while calculating Gratuity, we should consider 26 days a month.
To Calculate Gratuity:
Basic Pay + DA * 15/26 * number of years. You can also use the link below for the calculation of gratuity. [Calculate Gratuity](http://ndtvprofit.com/Calculators/gratuity.htm)
Note: Gratuity is payable to any employee only if he serves for a minimum period of 5 years consecutively with his employer. The amount of Gratuity is calculated based on the last average salary drawn/last drawn monthly salary as of the date it is taken into account and the number of years served by an employee.
Acknowledge(0)Amend(0)
72Leave encashments are calculated based on Earned/Paid Leave only.
Method of Calculation: Basic Salary per month / 26 * Number of Earned Leaves left. Similarly, while calculating Gratuity, we should consider 26 days a month.
To Calculate Gratuity:
Basic Pay + DA * 15/26 * number of years. You can also use the link below for the calculation of gratuity. [Calculate Gratuity](http://ndtvprofit.com/Calculators/gratuity.htm)
Note: Gratuity is payable to any employee only if he serves for a minimum period of 5 years consecutively with his employer. The amount of Gratuity is calculated based on the last average salary drawn/last drawn monthly salary as of the date it is taken into account and the number of years served by an employee.
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Gratuity calculation.doc
LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf