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It is a rule that during leave, employee draw leave salary (i.e. salary last drawn by him/her). If the person is on leave on the date of his increment (say 01 july) he will be eligible for increment from the date of joining the office. But in case 01 july and 2nd july are holidays and person is on leave from 03 july or was on leave upto 30 June, in these both cases, the employee is entitled for salary on 01 and 02 July or will draw leave salary. In clear words, is he entitled for increment on 01 july or not.
In my opinion, the prefix and suffix to leave are duty period and not the part of leave.

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