Whether the earned leave encasement is done on gross salary or basic+da with appropriate act as per factory act 1948?

Dear all,
please tell me "how to calculate EARNED LEAVE ENCASHMENT'

Hi,
different companies calculate it in different way.
most used ways are as follows:-
1) 1 day basic salary X no. of ELs
2) (1 day basic salary + 1 day TA + 1 day DA) X no. of ELs

Why do you need to calculate encasement of earned leave? Are you a HR professional or management student?
Generally it depends on the company policy like in some company it is enchased on basic and dearness allowances only and in some it is enchased on gross salary.
I my previous company if you have 30 days leaves you will be paid for 34 days (26 days equal to 1 month plus 4 days)
I believe this clarifies your query.

Hi,
Leave encashment calculation differs for each company:
Calculation:
(Basic Salary + DA)/30*Earned leave

Dear,
The earned leave encashment caliculation formula as per factories act
Basic+DA*No.of eligible ELs/26

Hello,
As per the Factories Act, it is :
(Basic+DA) / 26 * No of Encashment Days.
But this is flouted by most companies for their benefit as they calibrate the rule as under
(Basic+DA) / 30 * No of Encashment Days.
Trust this is fine.
Warm Regards,
SR Banaji
Resolve Business Solutions

Companies have their own policies for leave encasahment as some of company even do not allow for leave encashment. So even if you an HR then better you decide yourself how it will be good to calculate.
If you want to know examples for calculation then some companies encash pending leaves by paying the 50% comparing to a working day salary as well as few companies encash leaves only if the 50 % of allowed leaves are pending.

Leave encashment should be done on gross salary instead of basic salary, calculation formula should be
Gross Salary/26 * no. of leave/leaves.
Thanks & Regards,
From,
Sumit Kumar Saxena

In calculation for Leave Encashment (Gross/26*no. of leave)
what does 26 mean?
Thank You

26 means the working days for the month bearing 30 or 31 days in case of 28 or 29 days 26 will be replaced by 24.
Thanks & Regards,
from,
Sumit Kumar Saxena