Dear Ritika.S.C,
Your query seems to me, not properly framed or your concept of leave is not clear to you. I have not understood what you want to say.
I am equally confused reading some of replies.
Is your question on encashment of leave or salary on leave granted?
Answers for both are same. You need to be in shoes of employee and you will get the answer. Will you accept the salary for leave at basis only?
To any establishment or company either Shops & Estb. Act or Factory Act or Mines Act or Docks workers Act is applicable and the earned leave is governed under those Acts. All those Acts are protecting the interests or rights of employees. Those Acts can not say to pay leave salary on Basic only.
I am giving the provisions under Factory Act and Bombay Shops & Estb Act verbatim as under:
Factories Act Section 80: Wages during leave period.—
(1) For the leave allowed to him under 1[section 78 or section 79, as the case may be,] a worker 2[shall be entitled to wages] at a rate equal to the daily average of his total full time earnings for the days on which 3[he actually worked] during the month immediately preceding his leave, exclusive of any overtime and bonus but inclusive of dearness allowance and the cash equivalent of the advantage accruing through the concessional sale to the worker of foodgrains and other articles.
Bombay Shops and Estb. Act Section 36: Pay during leave--
Every employee shall be paid for the period of his leave at a rate equivalent to the daily average of his wages for the days on which he actually worked during the preceding three months, exclusive of any earnings in respect of overtime.