Confused About Carryover and Privilege Leave Calculations in Full and Final Settlement? Let's Discuss!

Hello All,

I am Nikhil.

Please let me know the Carryover (C/off) rules.

Secondly, I am confused about the PL (Privilege Leave) calculation rules in F & F (Full and Final settlement), with an example given below:

Basic - 5000
Balance PL - 20 in F & F

1) 5000 / 30 * 20 = 3333
2) 5000 * 12 / 365 * 20 = 3287

What is your current calculation?

Please help me with this matter.

Thank you.

If it is EL (Earned Leave) then,

Formula for leave encashment = current basic/26 * earned leave

5000/26*20

There are two methods followed by the organizations:

1. The public holidays during the leave period are calculated as PL. If so, the calculation is BP/30*20.

2. The holidays during the leave period are excluded while accounting for the PL. In that case, the calculation is BP/26*20.

In common, the first procedure is followed by many organizations.

Regards,
Manager-Adm

Hi,

I also agree that the commonly used method in the organization is the first one, i.e., Current basic pay/30 * balance leave, i.e., PL or EL. Regarding Compensatory Off (C/off), if someone is working on a holiday or a day off and then takes leave in lieu of that particular day, that is treated as Compensatory leave for working on a holiday or day off.

Regards,
Rajiv Madan

Dear,

Always calculate EL encashment as follows: (Basic + DA) / 26 * No. of EL balance. This is because, in the Factory Act or Shop & Estab. Act, average wages per day means monthly wages / 26. Per day average wages shall be paid for every EL in the credit of an employee. Never go with the wrong practice; always follow the Act and Rules.

Thank you,
Mohd. Arif Khan