Leave Wages - Employee Wages - CiteHR
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21 days leave wages are required to be paid to the employees in a year. Is there any time limit by which leave wages of previous year be paid to the employees as per wages /factory act or rules. Pl. Also clarify whether leave wages are to be paid as per calendar year or financial year
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Leave wages calculate as per the calendar year, and as per the factory act working of 240 days of every employee you have to grant 1 leave for 20 day working, so it will be 13 and about other leave its depend upon company policy whether you want to give CL/SL.
Accumulation of leave is allowed up to 40, more than that it will collapse.
Seniors plz correct me if any mistake.
Our learned member suchita elaborated the act. but one small correction. leave accumulated more than 30 days shall lapse.
Dear Friend, Exactly, leave encashment is totally discretion of employer he wants to give or not. No wordings in this regard mentioned in Labour laws. Rgds
The leave applicability differs from state to state, governed by the respective shop and establishment act. It is not uniform . Neither the companies can decide lesser number of days
Sir, What are the Leave (ie,CL,SL,PL) taken the employee for calender year, and also which leave carry forward to next year. Kindly provide the all details. It is very urgent regards K.Sivakumar
Annual leave with wages differs from state to state and Act to Act. For example under the Shops Act in Maharashtra 21 days leave for every year (If worked for 240+ days) is mentioned. Under the Factories act 1 day leave for every 20 days worked is prescribed. One will be eligible for this leave if 240+ days are worked in that year.
Please specify your state & type of establishment to guide you correctly.
Shrikant

Only under the Factories Act it is mandatory to pay leave wages before employee proceeds on leave. Refer to your state Shops Act for leave provisions. In Maharashtra under shops act leave wages payable only at time of separation of employee.
Sir/Madam
Leave with wages should be paid to employees at the beginning of subsequent calendar year. i.e leave with wages is to be calculated for calendar year and not a financial year.
As per the factories act, leave with wages can be accumulated up to 30 days as on first January. If it exceeds beyond 30 the number of days beyond 30 will get elapsed.
In some company to motivate the employees leave en-cashment system has been introduced. There is no hard and fast rule on leave encashment in industries.
regards
raju
Raju,
You are wrong, leave wages are not to be paid (unless a factory). Leave is given for employees to enjoy it. It is a different matter that employers pay off leave wages, especially to contract workers & save. If employee is actually given leave, employer would pay his share of PF & ESI contributions on wages for leave enjoyed, when leave wages are paid these contributions are zero for paid leave wages.
Shrikant Prabhudesai
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