Leave Encashment In CTC Structure

neha-moon

Hi any one can help me what will be the calculation of leave encashment in ctc structure (salary structure). what will be the formula or calculations.
30th July 2019 From India, Mumbai

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Neha-moon

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There is no hard & fast rule/act stipulating any methodology for this purpose. Leave encashment generally has to be computed on the basis of monthly basic gross salary last drawn (excluding any arrears, occasional incentives like production/sales incentive, OT etc.), divided by 30 days, multiplied by no.of days of leave encashed. Annual charges not payable on monthly salary towards bonus contribution, gratuity, ESI etc are also excluded. The amount of leave encashed is taxable as 'salary income' but will not earn any contribution towards EPF/EPS. (pl.see EPFO circular attached.)
30th July 2019 From India, Bangalore

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NO PF Contribution on Leave Encashment - SC judgment-Clarification by EPFO.pdf (230.0 KB, 222 views)

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 PF Contribution on Leave Encashment - Clarification by EPFO.pdf

 SC -PF judgment on No PF on Leave encashment.doc

 EPFO Circular Leave Encashment.jpg

Leave Encashment In CTC Structure

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