Ramesan.pt
41

Dear Prasad,
In your case, you have to settle this leave wages with the current salary / wage you have committed to pay your employees as per the terms of employment. Factories Act clearly says Leave with wages as ''all total full time earnings exclusive of over time and bonus but inclusive of DA''. And if we see the definition of wages under payment of wages act for better clarity, it is further very clear that any remuneration payable under any award or agreement and any additional remuneration payable under the terms of employment but does not include bonus and other allowances.
With this we can conclude that you have to make this leave settlement with last drawn salary / wages. And if you pay any additional pay other than mentioned in your terms of employment, that need not be taken for leave wages calculation.
Regards

From India, Coimbatore
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