Any one Plz Suggest me regarding EL Enchashment,
1) Encashment has any formula?
2) EL Encashment is calculated on "Gross salary" or "Basic+DA"?
8th January 2019 From India, Hyderabad
Dear Karthik,
Please refer to the Act which is applicable to your establishment and the policy followed by your organization. Usually, Leave Encashment is done at the time of employee exit and the following formula is used:
((Last drawn basic pay+DA)/30)*Number of Earned Leaves to be encashed
In case of workmen, the following formula is also used:
((Last drawn basic pay+DA)/26)*Number of Earned Leaves to be encashed
9th January 2019 From India, Delhi
Thank you Sir,
For your valuable Suggestion.
9th January 2019 From India, Hyderabad
One small Query is that ,
There is any Amount limit for EL Encashment.
Thank you in advance
9th January 2019 From India, Hyderabad
Dear All,
Is there any specific section defined in factories act for considering Leave encashment Basic+Da only, please share us. I think we need to consider on Gross.
Shivananda V D
19th August 2019 From India, Bangalore
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