Leave Encashment Calculation: How Do You Figure It Out?

Hi, my question is, what is the formula for calculating leave encashment?

Hi, earned leave is always calculated based on the basic salary and should not exceed 30 days per year. Any unused leave can be carried forward.

Regards

From where have you come to the conclusion that earned leave is always calculated on basic salary?

Earned Leave Calculation

Earned leave is always calculated on basic salary. It should not be more than 30 days for a year. If it exceeds that, it can be carried forward.

Regards

Hi All, To calculate leave encashment, we can use the following method to evaluate the leave encashment amount: Basic/26 * No. of Days (EL). Some companies use the formula: Gross/30 * No. of Days (EL) to evaluate leave encashment. In my opinion, you should use the first formula, i.e., Basic/26 * No. of Days (EL).

Thanks & Regards, Sunil Sharma

Regards