Leave Encashment Process: Can Seniors Share How It Works in Your Organization?

To all Seniors,

It would be a great help if you could please brief me about the leave encashment procedure in an organization. Looking forward to your revert.

Thanks

Please use this simple formula: Basic Salary/31 * Days of Leave to be Encased = Your Encashment. It's 31 days because December has 31 days, which is the month when all leave balances are reviewed for carry forward.

Regards

Maximum Accumulation Limit for Earned Leave (EL)

What is the maximum number limit to which Earned Leave (EL) gets accumulated? I mean that every year, if the employee is not availing the specified number of EL days, they get carried forward to the next year and so on. My question is, to what number can the EL be accumulated before it would be lapsed?

Looking forward to your response.

Thanks

According to the provisions under Section 79(5) of The Factories Act, 1948, the earned leave balance can be carried forward to the next year and shall not be accumulated for more than 30 days in a year. So, if the earned leave exceeds 30 days, it can either be encashed when due or may be lapsed if not encashed.

Regards,

It would be a great help if you could please brief me about the leave encashment procedure in an organization. Looking forward to your response.

Thank you.

No, leave encashment is not a part of the salary break-up. It is determined by company policy.

Regards,