Leave Encashment: Can Someone Explain How to Calculate It?

Could anyone help me out? What is the formula to calculate the encashment of leave?

It's EL only....which we can encash:
EL Encashment calculation = Basic + DA / 26 * Number of EL to be Encashed.......

Earned leave is calculated based on the gross salary. However, some companies usually calculate it based on the basic salary.

Formula for Calculating Earned Leave

The formula for calculating earned leave is as follows: Basic + DA / 30 * 15 * Number of earned leave available.

Regards,
Bhargavi

I wanted to know whether there is any law or rule regarding compulsory leave encashment. Currently, I am working in the service sector, which is registered under the MSMED Act 2006. As per our company rules, there is no leave encashment. Therefore, I would like to know if there is any rule for this.

Thanks & Regards,
Nandan

I want to know why we are paying PL & SL to employees. As our organization provides employees on a contract basis, is it compulsory to add leave encashment to their cost? How does 5.83% arrive on basic + DA?

Clarification for Leave Compensation to Employees

Regards,
Ashlesha