Hi Yamini,
If you concern is regarding the final salary settlement and other payments then it is on the gross salary. However leave encashment and gratuity would be on the basic salary.
I do not think the practice of giving leave encashment on basic is right.
Most of the shop and establishment acts and the factory act require compulsory encashment of leave pending at the time of termination of employment and it also specifies that this will be paid on "normal wages" which means gross wages
Salary/Wages, medical/other reimbursements and Leave Encashment should be on Gross, Gratuity and Bonus as per statutory norms/calculations.
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