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 refer to the historical data of your organization to avoid any unnecessary chaos in your organization. It's calculated as follows:
Considering an employee's gross salary is Rs. 20,000, and he has 15 ELs/PLs credited in his leave account. He will be paid Rs. (20,000/26=769.00) (769x15)=Rs. 11,535.
Warm regards,
Umesh Chaudhary
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