Saswatabanerjee
Partner - Risk Management
Hr@eliteinfoworld.com
Assistant Manager Hr
+2 Others

Hi All,
I m working in a MNC with 5 days working.
In our Organization if any employee takes leave in a month and if leave is unpaid, then the amount for his leave deduction is calculated on the basis of number of Working days instead of number of days i.e. 30 or 31 days.
Since it is 5 days working so the number of Working days comes to 22 days and in case in any month there is any holiday then accordingly the number of working days are further reduced.
Hence in this case the amount deducted for the leave taken is huge amount which is a concern for employee.
Is there any rule for such calculation?
Can anyone guide me in this matter.
Thanks and Regards
Simple Bajaj
14th October 2013 From India, Delhi
Dear Member,
I also agree with Mrugen Vyas.
Usually it is calculated by total salary/ number of days in a month* no. of days an employee came in a month or he was on leave
Regards,
Shreya Parikh
HR Executive
14th October 2013 From India, Pune
Dear All, Thanx for your reply. I would still request you to please mention any provision as per law which mentions this Calculation, If ANy Regards Simple Bajaj
14th October 2013 From India, Delhi
Dear Member,
Normal deductions are as follow:
1. PT
2. ESIC
3. PF
4. TDS
These deductions are as per your salary, you ll get slabs for all these in google.
Other deductions are depending on firm and its operations, how many employees are working and other things.
Regards,
Shreya Parikh
(HR)
14th October 2013 From India, Pune
Hi Ms. Parikh, My query is whether calculation of deduction of leaves on the basis of number of working days in a month is mentioned in any law.
14th October 2013 From India, Delhi
There is an old Supreme Court decision in a gratuity case that says daily rate needs to be computed by dividing monthly salary by 26. That is the benchmark now followed by courts. Even min wages law follows same rule. The daily rate does not change with change in number of working days or number of holidays declared for a month. Even for February, you still use the same method of dividing by 26
16th October 2013 From India, Mumbai
Hi If u are aware of that Supreme Court ruling, can u please share that... So even the amount for Unpaid leave is also calculated on number of working days?.
17th October 2013 From India, Delhi
It is quoted in every book and even in bare acts on gratuity Google for jeevanlal ltd v/s appalet authority authority under gratuity act.
17th October 2013 From India, Mumbai
Bajaj
If your Co is coming under Delhi Shops & Commercial establishment Act .and your employees are eligible for wages for weekly off or close day under Sec 16 or 17 ,you have to arrive the daily wages by dividing the monthly salary by the actual calendar days of the month or 30 .(as per general clauses Act)
The SC case Banerjee was referring to is Digvijay Woollen Mills Ltd v.Mahendraprataprai Buch(1980.AIR.1944 ,1981 SCR(1).64)
VARGHESE MATHEW
09961266966
17th October 2013 From India, Thiruvananthapuram
I am New HR in Software company wants to know in case any employee take half day leave in second half on saturday and again takes half day leave on monday in first half will sunday will be counted as leave?
12th July 2019 From India, Delhi
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