Deduction In Case Of Leave Without Pay

vidya1983
Dear Seniors
I would like to know what all deductions to be made in salary in the case of leave without pay. For eg: if a person is on leave without pay for 15 days, whether we have to deduct his medical & LTA reimbursement also or is it that only basic pay is deducted?
Is there any specific company act for deciding this?
Vidya
Madhu.T.K
Normally such reimbursements will be a particular percentage of basic salary or gross salary and such benefits will be included in the CTC. Besides, these payments will be made annually or twice in a year. In such cases, proportionate deduction shall be made to arrive at the actual entitlement.
Regards,
Madhu.T.K
psdhingra
That depends upon whether the allowances are based on any percentage of the basic pay or are of fixed type, i.e., flat rate of allowances. Do, for that purpose, you will have to check your own organisation's pay structure for the employees.
nanjunatraj
We are under the wrong notion that we can sanction leave beyond what is provided in the Standing Orders, Factories Act, Shop Act or Appointment order. In case if an employee exhausts all his eligible leave and apply for leave, his absence can be marked as "AA" (Authorised Absence) if the same can be permitted and in all other cases his absence will have to be treated as "UA" (Unauthorised Absence). In cases of absence on medical grounds (ESI) his absence can be marked as "MA" (Medical Absence).
N Nataraajhan, Sakthi Management Services
psdhingra
Dear Natarajan,
Have you actually understood what actually was the query and what reply you are giving? The querist has not asked for difference between authorised absence, unuthorised absence and medical absence.
mohan_mdu1
Dear Vidya,
The medical facility is an allowance granted to the employee for his well being to serve the company for its well being.
If the employee did have some leave in his credit the question doesnt arise at all. Once a person is appointed on a monthly salary basis, the other payments like LTA and medical allowances are to be allowed to the employees since these payment factors were arrived on the basis of motivation to employees. If an employee goes on very long leave say 3 months or more then the case has to be dealt with in a different stand.
However you have check your company's prevailing guiding principle/rules.
wishing you a best solution,
R MOHAN
helly.shah
Hi all,
i have to do salary payment of all employee and i dont know from which ammonut absent days should be deduct. e.g one employee's CTC is 14650 and gross salary is 13000 so from which amt i have to deduct his salary and how many? he is present 23 days out of 30 days. i have to pay for 23 days. pls reply soon
Madhu.T.K
Hope that CTC includes employer's share of PF/ESI and amount payable as bonus, gratuity etc. If so, the actual salary is gross salary, ie, Rs 13000, on which you have to deduct the LOP.
Madhu.T.K
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