Leave Encashment Formula...

Dear Seniors
Kindly let me know what is the formula for calculating Leave Encashment..i will be thankful if u reply me soon....
Thanks
Regards
Paras Thakur..

Dear Paras,
There are two ways of calculation.
Some companies pay leave encashment on Basic+DA (Basic Pay) and some pay on gross salary. Please do refer historical data of your Organisation to avoid any unnecessarily chaos in your Organisation. It's calculated as follows:-
Considering an employee's gross salary is Rs. 20,000 and he has 15 ELs/PLs credit in his leave account. He will be paid Rs. (20,000/26=769.00) (769x15)=Rs. 11535.
Warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)