Understanding Final Settlement: How to Calculate PLI, Leave Encashment, and Daily Salary?

Hi,

Can you explain how final settlement is calculated when PLI is included in the CTC? How do we calculate leave encashment and salary for the number of days?

Regards,
Likki

PLI is normally given to the employees who have worked with the company for a specific period. For the calculation of FFS leave encashment, always calculate based on 30 days, regardless of whether the month has 30 or 31 days.

Dear Sanjib,

Why is the salary for leave encashment divided by 30? Have you studied this somewhere or are you speaking from your experience? The salary for leave encashment should always be divided by 26 because one day's salary is obtained by dividing the monthly salary by 26.

Thanks,
J. S. Malik