Optimizing Leave Encashment Calculation: Gross Salary Basis and 26-Day Calculation

I am retired in Sep 09. My August 2009 salary was 24,140, but my salary was reduced effective 16th Sep to 21,660 due to a disciplinary decision. I have earned a net salary of 22,990 only for Sep 09. Whether leave encashment will be paid on the last month's net salary of Rs. 22,990 or @ Rs. 21,660. Please guide.

Ramesh

Dear Mr. Rameshom,

As per the rules, the formula for leave encashment is as follows: Last Basic/30 x Number of days leave encashed. Hence, you will receive your leave encashment based on your last drawn basic salary.

Hello Mr. Karadkar,

I would like to suggest a major amendment to your Leave Encashment formula. Firstly, the Leave Encashment should be based on the gross salary, not the basic salary. Secondly, the calculation should be based on 26 days, not 30 days.

I hope you can implement this revised formula effectively.

Thank you and regards,
Chander Kr.
HR-Exec.
E-Mail: chander_kmr02@rediffmail.com

Hi,

Leave encashment depends on the last basic salary (actual, not earned).

A.K. Ramesh
Mobile No. 098454-23311

Dear A K Ramesh,

Please let us know which labor law allows us to make leave encashment based on the last basic.

Regards,

Bhawna Bhardwaj

Leave encashment matrix depends on the last basic salary/Number of days of the month multiplied by the number of annual leave entitled. The number of annual leave depends on the HR policy of your company, whether it is earned leave or entitled leave. Please check your company's policy.

Regards

Can you please tell me about the formula for leave encashment? Is it based on 30 days or 26 days? Please provide your comments.

Manish