@ Deep Chakraborty,
Good Evening.....!!!!!
You may calculate leave Encasement on the BASIC salary, generally this is a trend in the current pay-rolling practices.
Leave Encasement = Basic Pay / 30 * No.leaves for encasement
Note : Refer your company HR manual or standing order to ensure the proper way & rule to calculate it in YOUR COMPANY.
All the best.
Leave encashment is based on the standing order / HR policy of the company. Some companies are paying leave encashment in gross salary and some other companies are paying on basic + DA.
It varies to companies to companies. But in normal practice it should be paid on basic + DA.
If we pay on basic and DA , then it will encourage the employees to take leave instead of accumulating the same for encashment.
Hi Deep,
Leave encashment is not legally correct; though not illegal. Are you asking about payment of leave wages? Narrate the circumstances a bit to enable a appropriate reply.
Shrikant Prabhudesai
shrikant_pra@yahoo.com
'Legally incorrect' as leave is to be enjoyed, there is no mention of encashment of leave in Bombay shops act / factories act or rules.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute