Dear sirs,
If you calculate leave encashment of daily wagers, you have daily rate of wages as announced by State Govt. or total of MONTH'S Basic salary+ DA + VDA if any divided by 26.Suppose MW is Rs. 300 per day and you have to pay 10 days encashment, Answer is 300x10=Rs.3000/ and in other cited case, suppose Basic +DA is Rs. 7800 per month then for 10 days leave encashment amount payable is 7800/26x10=Rs.3000/
In case you want to calculate employees salary say your management staff's who are mostly monthly rated, say in one case if basic salary, No DA/VDA suppose it is Rs. 15,000/ per month then Rs. 15000 divided by 30 or actual number of days in month to get one day's salary.For 15000/30= Rs. 500 for one day and then multiply it by leave days.
When I was HEAD-HR , I used to calculate like this Rs.15000x12xno.of leaves divided by 365 days.365 days are days in that particular year employee is exiting.Justification was that there are 28 or29/30/31 days in 12 months of any year but days are 365 or 366 only.People were mostly observed more satisfied by the second last formula.
Regds,
RDS Yadav
Labour Laws Advisor