Understanding Earned Leave: How Do You Calculate and Encash It?

Hi, I need a brief calculation of earned leaves and the rules and procedures for encashing earned leaves. Please provide me with the details. Thank you for your response.

Dear Keerthi,

First of all, tell me what you require - P.F Calculation or Earned Leaves Calculation.

If you require P.F calculation, please refer to the email above from Mr. Atul Ghumatkar. I hope the data provided above is helpful for you.

If you need Earned Leave Calculation, then follow the steps below:

Step 1: Count the number of actual working days of the worker within a year (Jan to Dec). For example, Actual Working Days = 240.
Step 2: Sum the same and divide by 20. (EL = 240/20, EL = 12)
Step 3: After that, apply the formula i.e. Current Salary / 26 * EL. (Leave encashment = 8000 / 26 * 12 = 3692.30 Rupees)

If you have any confusion, please feel free to contact me.

Thanks & Best Regards

Mr. Amit Sharma,

Sorry, but where did you get this formula from? Kindly let us know if it is specified under any act. If yes, please inform us.

Regards, Vishal Malik

Could someone please tell me whether this formula is correct? I received this formula from someone working as a manager in a manufacturing company, as I am getting confused by the numerous formulas I have seen.

Formula for Earned Leave Calculation

The formula is: (Basic + DA) / 30 * 15 * Total number of earned leaves available.

Thanks & Regards,
Bhargavi H K