Leave Enchasement

Dear Sir,
I would like to know what is the exact rules of calculation of leave enchasement , either it is in Basic salary or Gross salary ?. I will be highly gratefull if you can let me know about it.
I am little bit confused because I have discussed about it to many of my friends about thier companies policies some of them have told that it is in basic,but some are telling that the rules have been changed now it is calculated in gross, also it is a request if it is so you can give me the details of amended rules.
Thanks
Aarti

Dear Arti,
Under which of the Act & Rules you are liable to make calculation for leave encashment ?
With Regards,
R.N.Khola

Dear Aarti,
As per Factories Act, 1948 we are to make leave encashment on gross wages/ salary up to the statutory limit for accumulation of Earned Leaves i.e. 30 days but if this leave accumulation goes beyond this limit then it is the discretion of the employer whether he gives payment on these extra leaves or not. In that case he may encash them on the basic salary.In my opinion this is because of this situation we used to came across this confusion. For more details you may go through chapter VIII on leave with wages. As far as Shops Act is concerned in our State Act the same situation is there but you have to go through your State Shops Act as I do not have the copy of the same with me.
Opinion/comments submitted as requested.
With Regards,
R.N.Khola

Hi Aarti,
As per rule of govt. of india, leave encashment, is calculated on last the basic salary of an confirmed employee.
As, if somebody has joined in March, and in the m/o Sept that person become confirmed emplolyee with a nominal increatment as well, than in next at the time of leave encashment, he will be paid according to his last basic salary.
Regards
Renu

Hi ,
It depends on company to company.For eg.in my company which is into agricultural equipment manufacturing we encash it on the basic.
Regards,
Radhika

Dear Radhika,
In my opinion the company is not at liberty to encash Earned Leaves at the basic rate of employee/ worker.If you do not mind plz let us know which of the Labour Law gives us type of liberty.
With Regards,
R.N.Khola

Dear Mr. Khola,
Whether CL is compulsory to the the factory workers in Mumbai. We give PL/EL - 15 days and SL 7 days total of 22 days. Still it is compulsory for cl? Kindly advise.

Dear Pradeep,
Sorry I do not have the knowledge on your State Act relating to grant of casual & sick leaves to factory workers. Most of the States have enacted this NFH Act in the name of State(name) Industrial Establishment (National & Festival and Casual & Sick Leaves) Act. If this Act is there then you are to grant CL as per this Act.
With Regards,
R.N.Khola