Leave Encashment [Thread 149945]

Dear All,
Do you consider Basic salary or gross salary for leave encashment ?
regards
Vibhor

Hi Mr. Vibhor Gupta,
The leave encashement will be calculated based on last drawn basic salary but, few organizations are giving on last drawn gross salary.
you can consider the basic salary to reduce the cost to the company.
Thanks & Regards,
Sujatha

Dear Vibhor,
In our opinion gross salary is to be taken into account for caculating the Earned Leave encashment as if an employee takes leave then he is paid full salary & not the Basic etc.
Regards,
R.N.Khola

Encashment practice would differ from company to company...Incase a company does leave encashment @ of Basic salary then any notice recovery is also made at the rate of Basic salary...Both Notice recovery & leave encashment rate should be same (either basic or Gross)

yes,i too agree with prashant.logically we should what prashant has said but legally
we can pay on basic or gross as per our company policy.
tks
js malik

Dear Vibhor,
u have seen different people different perception.
wat the law says = Basic+DA*no. of leave/26
but law is silent on leave encashment. u can go by either ways. But still recommend u to go for basic salary. it will reduce Cost of company.
also it is varies from comp to comp.
Regards
Vipin:icon1:

Dear Senior,
How many Pl should be en cashed maximum, is any EL/CL should en cashed?
Regards
Bisu

Dear,
again u to see wat ur comp policy. u can do like max to max 40 PL can accumulated.
or just do whenver a employee complete 240 days in a year he/she is eligible for 21 dys leave.. it is also in law. he can encash.
but it is an internal matter of the org.
Regards
Vipin:icon1:

dear Seniors,
I am Sudheer.V our company Leave policy is telling: no leave is to be availed during the period of probation.
please clarify if any abjections.:huh:

Dear All,
Kindly clarify me the following :
Our company is about to start its commercial operations. So far not yet prepared Standing Orders of the company. Actually, our company's Payroll shows 80 employees (together i.e. Head Office and Factory). But in this payroll we have mentioned Drivers and Pantryboys names who are in temporary roll. Then, how to prepare standing orders. While preparing the standing oders, classification of the employees/workmen is to be included or not Please clarify me
Regards,
Murali
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