How Do I Calculate Leave Encashment Under the Factories Act in Maharashtra?

I am the HR associate in the company. I want to know how to calculate Leave Encashment under the Factories Act in the Maharashtra State Government.

I want to know how to calculate Leave Encashment under the Factories Act.

The general formula that I know is:

Leave Encashment Formula

EL = (Basic + DA) / 26 * Remaining Days

Ideally, leave encashment should be calculated on all wage heads except those linked with attendance, such as canteen subsidies, where the allowance is calculated on a pro-rata basis. The Factories Act does not provide for encashment. The provisions related to encashments are governed by standing orders or agreements with unions or works committees.

Regards,
Shailesh Parikh
Vadodara, Gujarat
[Phone Number Removed For Privacy Reasons]

Leave encashment = basic / 30 x number of leaves.

Leave Calculation Under the Maharashtra Factories Act

The Maharashtra Factories Act states that 1 day of leave is granted for every 20 days present. However, it does not specify how to calculate leave encashment.

Regards,
Vijay R C

Can anyone give me clarity about the leave encashment formula? What would be the formula for making payment of leave encashment in the Shop & Establishment Act? Please reply soon.

Thanks & Regards,
Keerti Gupta
HR Manager