How Can I Calculate and Integrate Leaves with Payroll Using Excel?

Hi Alankrita, I need to calculate leaves and integrate them with the payroll process. Could you please advise on how to proceed, possibly using an Excel sheet?

Thanks and regards,
Alankrita

I wanted to know, as per the Shops and Commercial Establishment Act, how many leaves can employees get? Please reply.

Leave Entitlement Under the Shops and Commercial Establishment Act

The leave entitlement as per the Shops and Commercial Establishment Act varies from state to state, as each state has made its own rules. Normally, an employee who has worked for 240 days during a calendar year is entitled to annual leave (Earned Leave) with wages calculated at 1 day for every 20 days of work, to be availed during the subsequent calendar year.

With regard to National and Festival Leave, it is 8 days. In the case of Casual Leave (CL), it varies between 7 and 12 days.

Regards,
B.K. Mohanty
Cypress Management Associates
[Phone Number Removed For Privacy Reasons]

I would like to know how we integrate the calculation of leaves with the salary calculation.

Regards,
Alankrita

Leave Calculation Query

My problem is, in our company policy, we receive 24 earned leaves. These leaves are calculated based on PAYABLE DAYS, which include attended days, weekly offs, holidays, and leaves taken in the previous year. This means that when I take unpaid leaves, they are deducted from both my salary and my earned leaves for the following year. We receive the aforementioned earned leaves at the end of every year.

Please guide me, is this the right way to calculate leaves?

Regards,
Aditya

What I have understood from your notes is that for the calculation of earned leave, your company considers physical attendance days, weekly offs, paid holidays, and paid leaves, which I find to be acceptable. However, I fail to understand how unpaid leaves can be adjusted against accrued earned leave.

Please brief me a little more so that I can better understand your concern.

Regards,
B.K. Mohanty
Director
Cypress Management Associates

Dear Nirav, I appreciate your help. My company is launching an HRMS, and I have to outline the payroll process format. This requires demonstrating the integration of leaves taken by an employee with their salary. I need to prepare everything from scratch as I currently do not have a format to provide as an example.

Regards,
Alankrita

Please check your email. I have sent it to your email address. It will be helpful for you to understand the payroll process.

Thank you.

Regards