Home Top New Login / Signup
#Anonymous
Hi All,
Need your help to know about Earn leave encashment in Full and final calculation as per Mumbai shops & establishment act.
Earn Leave enchashment is calculated on current (last drawn) basic +DA or on Gross salary per month. In Factory's act 1948 sec. 80 it is stated as rate equal to daily average of his full time earning. Please guide.
Thanks,
Kshitija
From India, Mumbai
*Cite.Co Support Sponsors - Talentedge / Kredily

Dear Kshitija,
As per Shops & establishment act for mumbai you can encash earned leaves on Basic + DA. Some companies to extend an facility to the employees to encash it on gross. But this is completely Management call.

Kshitija,
As per section 36 of the act the payment should be made on gross wages. The section is reproduced here.
36. Pay during leave.-Every employee shall be paid for the period of his leave at a rate equivalent to the daily average of his wages for the days on which he actually worked during the preceding three months, exclusive of any earnings in respect of overtime.
Manoj, you stand corrected.
From India, Mumbai
Reply Here Start New Discussion






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2017 Cite.Co™