Ideally the leave encashment has to be calculated on all wage heads except those linked with attendance e..g. canteen subsidy etc. where the allowance is being calculated on days attended on pro rata basis.The Factories Act does not provide for Encashment. The provisons related to encashments are governed by standing orders or agreement with unions/works committee.
Regards
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65
dear frnd,
leave encashment = basic / 30 x no. of leaves.
Maharashtra factories act says dat, 1 day leave for 20 present day but it does not mentioned how to calculate the leave encashment.
rgds,
Vijay r c
Dear All,
can anyone give me clearity about Leave encashment formula.
what would be the formula for making payment of leave encashment in Shop & Establishment Act.
Please reply Soon.
Thanks & Regards
Keerti Gupta
HR Manager
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