How Do Corporates Calculate Privilege Leave Encashment? Seeking Practical Formulas and Advice

Request for Corporate Policy on Privilege Leave Encashment

Can anyone share the policy used in corporates to encash privilege leave? In our company, we calculate the basic as 70% of the gross salary, resulting in a high basic amount, unlike the maximum slab of 6500/-. We are now looking to encash privilege leaves for our employees. Can someone share the formulas used in corporates to calculate privilege leave so that we can choose one that is feasible for our company? Also, please suggest the most economical way of calculating privilege leave with a formula. Your timely suggestions will be of great help.

Thanks,

Vidhya

In many companies, the encashment of PL (Privilege Leave) is based on the basic salary. It depends on the policies of your company.

Pon

In some companies, they will take the gross salary for PL encashment and also calculate for 26 days. It depends upon the company policy.

Regards,
Alphonse

Formula for Calculating Privilege Leaves

The formula for the type of leaves is as follows:

(Gross - Conveyance) / 30 x Number of Privilege Leaves

Regards,
Sanjeev