If it is gross salary then how come they consider PL adjustment as Basic salary? This also not mentioned any where in Appointment Letter?
Is it right? Please comment.
Thanks once again.
28th January 2014 From India, Mumbai
There are no specific rule for Encashment of Leaves. The companies prepare their own Rules for this. In this, most of the companies process the Encashment at the time of Full & Final on Basic Salary only. Because most of the employee don't take PL and accumulate them for encashment, whereas the accumulation is bounded upto a fixed number of leave and it varies state to state. As the benefit was not taken on time, that's why the Encashment is considered on Basic Salary.
Hope this information will be helpful for you.
29th January 2014 From India, Delhi