Leave Encashment [Thread 46232]

can any body tell me how many day are to be counted in a financial year for leave encashment ? in our company we have toatl 48 days leave per year (pl,cl,sl etc) from these how many days should be taken for leave encashment if no leave have been availed by any employees of my firm do i have to make leave payment for all the 48 days or are there any restriction in nos of days is there any act or rules/regulation regarding it
can any body post me the details along with the formula to calculate the leave encashment also do we have to calculate the nos of days at 26 or 30 pl advise
alex

can any body pl tell me abt leave encashment how many days are applicable per year everything abt it pl

Hi,

You say that you have around 48 days of leaves entitled to you for a calendar year

this means that on an average the leaves entitled to an employee per month is 4 days

In our company, we have a limit of upto a balance of 20 days of leaves that can be carried forward to the next year. the balance would be encashded on the basic salary

for e.g, *( as per ur company)

at the year end you have a balane of 25 days of leaves which you have not availed

so out of 25 days, 20 days of leaves can be carried forward to the next year. so your opening balance of leaves next year would be 20+48(new leaves for new year) = 68 days till end of next yr

Now the balance of 5 days of leaves will be encashed on basic salary

if my basic pm is 15,000 then u may calculate in the following manner

Rs. 15,000 (per month basic salary) / 30 (days in month) = Rs. 500 per day

Now encashable leaves = 5 days. so you can multiply 500x5= 2500

thus, Rs. 2500 is the amount that would be paid to you on account of 5 days of encashable leaves

- ishita