Re: EL Encashment For 5 Days Working Company

Dear Sir / Ma'am,
Can please someone tell what is the EL encashment formula for 5 days / week working company.
thanks.
Monu

Hi Buddy,
As per factories act, an adult male worker will get ONE EL for every twenty days of working, For calculating 20 days you presence in the working place will be taken not weekly off or Holidays.
With Regards
Mr.Thumbs Up

Dear Monu
Encashment of leave :-
Mostly depends on company policy & certified standing orders 's provisions . So Please check your company's HR policy ,
It may be limit prescribed for encashment in rules of CO. In earlier post Mr TU has suggested the way how earned leave can be credited in individuals accounts , but the encashment issue is the another thing.
In most of the company after a certain limit , EL / CL are being lapsed if the concerned workmen or person have not availed this.

Leave encashment during service is not mandatory right for employees and not governed by any statute as far as formula is concerned. It is as per Cos policy. In your case monthly salary can be divided by 30 to arrive on one day's salary as it cost you less than dividing by 20 or actual working days.