Leave Encashment in Mumbai: How Can I Find the Right Information and Resources?

Hi to all,

Can anybody let me know what are the provisions for leave encashment in Mumbai? Furthermore, is there any website from where I can download the Bombay Shops & Establishment Act, 1948?

Regards,
Prasad

Dear Prasad,

The practice to pay leave encashment is almost the same in all industries. The leaves, such as Casual Leave or Privilege Leave, can be encashed. This encashment is taxable under the relevant act. The payment is based on 26 days of working for workmen and 30 days of working for staff. It is computed based on the basic salary + D.A. using the formula:

(Basic + DA) / 30 * number of leave days.

Additionally, the employer should deduct P.F. on encashment.

Regards,
Bhushan

Dear Bhushan,

It will be helpful if you explain how to deduct PF on encashment.

Thank you,
Nishant