Earned Leave Calculation: Is It Based on Basic or Gross Salary?

shifali
Can anybody tell me if the calculation of earned leave is based on the basic salary or gross salary?

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Hi, thank you for your question. Earned leave calculation is typically based on the employee's basic salary rather than their gross salary.
shifali
Please tell me, is the earned leave calculation based on the basic salary or gross salary as per the recent Supreme Court order?
amit_lycos
The leave encashment is based on the basic salary. According to the recent Supreme Court judgment, the Provident Fund (PF) deductions should not be made on the basic salary.

Regards,
Amit
shifali
Hi,

You told me that earning leave is based on basic salary, but I have read some quotes on this site that show a Supreme Court order to calculate earned leave based on gross salary. Can you please confirm if you are right? If so, what about those quotes I read that mentioned they have proof but I am unable to open the quotes and their attachments.

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