Earned Leave Calculation Confusion: Should We Count 30 Days or Just Working Days?

Hi,

Can anyone confirm how to calculate EL... whether 30 days should be considered or the number of working days???

Please clarify. 😕

Bhuvana

Dear Bhuvana,

Calculation is usually made as given below:
Days worked EARNED LEAVE
01-05 Nil
06-11 0.5
12-17 1.0
18-23 1.5
24-26 2.0
27-30/31 2.5

Members, please correct me if I am wrong.

With regards,
Murali

21 EL for 1 year means 21/12 = 1.75 months. (It's divided by months only.)

Further, if relieved early or joined in between, then take day from date of joining to Dec. 31st. And also, EL payment is calculated as Basic/30 days * EL.

If not clear, you can email me at bhadwaj.ch[at]gmail.

Dear Bhuvana,

ELS calculation will depend on the organization's leave policy. However, the ELS calculation formula is as follows:

Earn Leaves

For Staff (G00 to G06) - Actual Working Days / 20
(Ex: 240/20 = 12 Days)

For Executive - Actual Working Days / 12.50
(Ex: 240/12.50 (15 Days max))

For Manager & Above - Actual Working Days / 10
(Ex: 240/10 = 24 Days)

Actual/Physical working days = (Year Days - (Paid holidays + leaves taken + weekly offs)

EL Eligibility = 240 physical working days per year. For new joiners, we have to calculate proportionately.

Eligibility for Earn Leaves is that the employee has to complete the 240 physical working days in the year, and the maximum encashment of leaves for Staff is 30 days and for Executive is 90 days.

Regards,
D N Pavan Kumar
HR - Executive
Hyd
9052002346, 9014022203

Dear BHUVANA,

EL is granted under either the Factories Act, 1948, or the State Shops & Commercial Establishment Act. If both the Acts are not applicable, then by the rules of your unit. In the Factories Act, it is to be divided by 26 as prescribed under the Chapter of Leave with wages. Similarly, you may go through the provisions of leaves under the State Shop Act if the same is applicable in your case. In both Acts, provisions for eligibility and number of leaves to be given are mentioned therein. Please make efforts; you will find the answer to your query.

Regards,
R.N.Khola
Sr. Associate

Actually, according to the Factory Act of 1948, EL is calculated as 1 day out of 20 working days, excluding leaves, which includes Sundays and other leave days. It is encashed at the end of the year. The calculation is done based on Basic salary divided by 26 multiplied by the number of leaves earned.

Thanks,
Sukumar Sahoo

Dear friend,

EL calculated normally (completed every year, 15 days are added to his leave account, capping at 60 days, but the cap varies from company to company due to different policies.

EL's Calculation:
BASIC + DA
----------- * 15 days * number of years
30 days

Thanks,
VASU

Certainly! Here is the corrected text with proper spelling, grammar, and formatting:

Can you please tell me about employee leave and divide it among all managers: Business Development Manager, HR Executive, Executive-Operations & Resources, Administration, Receptionist, Executives, and office boys.

For all these designations, please provide the list of:
- Casual leaves
- Personal leaves
- Sick leaves

Could you also specify the number of leaves allowed per year for each category? Thank you.

Jhansi

Every organization has different procedures regarding EL. As per the Factory Act, for eligibility, a person should have 240 working days within a year, excluding rest and holidays. If an employee joins in the middle of the year, then two-thirds of their attendance will be checked during the calculation. In my organization, we provide 15 days of EL to employees. 1.25 days will be calculated for every 20 days of working. Here is how we calculate it:

Example - Suppose from January to December, a person has 280 working days, excluding rest days and holidays. To find out the number of EL days in a year, EL Due = IF(ROUND((total days, i.e., 280)/20,0) > 15, 15, ROUND((total days)/20,0)). This formula helps us determine how many EL days will go into their account. Then, the total EL = (EL due - EL availed) + holidays and national holidays. The third step will be to calculate the total amount as (Salary * 12/365) * total EL.

I hope this information helps you. For any assistance, please email me at rath_ratikanta@yahoo.com.

RATIKANTA RATH (HR MANAGER)

Dear Friend,

EL is calculated in Basic+DA divided by 26 * number of days. It depends on their company policy.

Regards,
Navamani