The general understanding is that for LWP purposes the salary (gross) would mean, the salary what the employee would have drawn had he not gone on leave. Further, this will not include incentives, OT etc. which he would have earned by working. In short, Basic, DA, HRA, and other allowances paid on monthly basis for the days he would have worked.
While calculating Salary, all Components which are part of Monthly Salary have to be taken in to Consideration based on Salary payable Days.
Annual Benefits should be paid on Prorata basis