Dear Sir,
I want to clarify from your side that what is the formula for leave encashment.In other word we will take 26 days or 30 days for payment of Leave.Earlier i was in Noida and i have seen many companies are making calculation for leave encashment in 26 Days.The reason behind it - 1Leave is earned for 20 days worked and it is excluded off days or holidays so leave encashment shoul be calculated on 26 Days.But here some seniors from account deptt.are saying that we are paying monthly salary so we use to pay 30 days and i was told by management to give me any cicular where mentioned leave encashment based on 26 days.I have consulted some seniors also they said that you will not find any formula but in Act it has been written that on 20 working days one El is earned so based this principle we should consider 26 days while calculating earned leave encashment.
PLz. guide me with any cicular.

From India, Jamshedpur
Hr Executive
Asst. Manager-h.r


Hello Ganesh,
In general leave encashment is calculated by considering 30 days in a month but in my last organization the leave encashment calculation was very specific. We used to calculate amount of each leave according to the per day salary of that particular month in which the leave was earned, after getting the amount of each earned leave one can add them to get the final amount.
Hope this will help you.

From India, Bhopal

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