Hello,
I am part of an IT firm under Shop and establishment act 1988. I have read many articles where Leave encashment is done on Basic Salary and LOP on gross salary.
But why do we calculate them according to basic and gross respectively? No one has yet stated reasons. So I would appreciate if someone could let me know the reason why we should go with basic and/or gross.
Also, should the notice period buyout be according to Basic or Gross pay ? and why ?
Request your advice on these.
Thank you.
LydGov
I am part of an IT firm under Shop and establishment act 1988. I have read many articles where Leave encashment is done on Basic Salary and LOP on gross salary.
But why do we calculate them according to basic and gross respectively? No one has yet stated reasons. So I would appreciate if someone could let me know the reason why we should go with basic and/or gross.
Also, should the notice period buyout be according to Basic or Gross pay ? and why ?
Request your advice on these.
Thank you.
LydGov