How Do You Calculate EL/PL Leave and Can It Be Cashed In After a Year?

Could anyone tell me the formula for calculating the leave, i.e., EL/PL? Is it possible for an employee to request encashing their EL/PL within the job after one year?

Regards,
Anjana Tanay Panda

Salary divided by 26 multiplied by the number of leaves equals the gross salary. Here, 26 represents the number of working days, and the number of leaves indicates the remaining balance of leaves.

Thanks & regards,

Sumit Kumar Saxena

Earned Leave / Privileged Leave Calculation

Earned Leave (EL) or Privileged Leave (PL) is calculated as follows: If an employee works for 20 days, they are eligible for 1 day of EL. The condition is that they must work for 240 days in a year. Previous year's leave can only be availed in the next year. Current year's leave can only be availed in the next year.

Regards,
V. Subbarao

Encashment of Leave Policy

Provision of encashment of leave, to the best of my knowledge, is applicable only during termination or resignation. In the case of a person continuing on the job, encashment of leave is a privilege the company may choose to grant and not a right.

Regards

Understanding Leave Calculation and Encashment

The leave calculation is not static for companies. Actually, the leave policy is defined in the Shops & Establishment Act, which varies from state to state. Leave is generally ascertained on a calendar month basis from January to December. For example, in Haryana, leaves are defined as 15 EL (Earned Leaves), 7 SL (Sick Leaves), and 7 ML (Medical Leaves) in a calendar year. Therefore, it is the company that generally proportionates the total leaves into months and makes them available to its employees.

In cases where all leaves are not utilized and remain unused, employees can encash the earned leaves for a maximum of up to 30 days. Many employee-friendly companies convert ML and SL into earned leaves for the benefit of their employees and do not let these statutory leaves lapse beyond the 30 days during the employment of these employees. Employees can encash those leaves at the end of the calendar year.

Thanks,

Regards
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