Please suggest the calculation of basic and dearness allowance when an employee goes on leave without pay. For example, for working 21 days, how will the PF and ESI deductions vary?
Suppose the PF for a full month (31 days) is X. Then for 21 days, the PF will be calculated as X × 21/31. Similarly, if the ESI for a full month is Y & Z (both employee & employer), then ESI contributions for 21 days will be Y × 21/31 & Z × 21/31.
The per day salary calculation is done by dividing X by 30, and then multiplying it by the total number of working days. So, how should we calculate it - by dividing it by 30 or by 31?
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