Dear Friends,
I have a query..... While calculating PL encashment in FFS of a staff cadre, What we have to consider 26 days month or 30 days month?
Similarly while calculating Gratuity , should we consider 26days month or 30 days month?
What is the legal binding?
Please explain.
Nitin..........
From India, Kolhapur
I have a query..... While calculating PL encashment in FFS of a staff cadre, What we have to consider 26 days month or 30 days month?
Similarly while calculating Gratuity , should we consider 26days month or 30 days month?
What is the legal binding?
Please explain.
Nitin..........
From India, Kolhapur
Hi,
Leave encashments is calculated on Earned/Paid Leave only.
Method of Calculation:Basic Salary per month / 26 * Nos of Earned Leaves left
Similarly while calculating Gratuity ,we should consider 26 days a month.
To Calculate Gratuity
Basic Pay + DA *15/26* no. of years
You can also use the link below for calculation of gratuity.
Calculate Gratuity
Note:Gratuity is payable to any employee only he serves for a minimum period of 5 years at a stretch with his employer. The amount of Gratuity is calculated as per the last average salary drawn/last drawn monthly salary as on date is taken into account and the number of years served by an employee.
70Leave encashments is calculated on Earned/Paid Leave only.
Method of Calculation:Basic Salary per month / 26 * Nos of Earned Leaves left
Similarly while calculating Gratuity ,we should consider 26 days a month.
To Calculate Gratuity
Basic Pay + DA *15/26* no. of years
You can also use the link below for calculation of gratuity.
Calculate Gratuity
Note:Gratuity is payable to any employee only he serves for a minimum period of 5 years at a stretch with his employer. The amount of Gratuity is calculated as per the last average salary drawn/last drawn monthly salary as on date is taken into account and the number of years served by an employee.
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x