Salary Deductions for Excess Leaves: Basic or Gross Salary in New Delhi's Private Companies?

What salary is taken into consideration when deductions are made for excess leaves: basic salary or gross salary? Is there any rule regarding this for a Private Limited company registered in New Delhi, India?

Leave Without Pay (LWP) deduction should be calculated based on the gross salary unless specified to be deducted from the Basic Salary.

Dear friend,

The general understanding is that for LWP (Leave Without Pay) purposes, the salary (gross) would mean the salary that the employee would have earned had he not taken leave. This amount will not include incentives, overtime pay, etc., which the employee would have earned through working. In short, it refers to the Basic Pay, Dearness Allowance (DA), House Rent Allowance (HRA), and other allowances paid on a monthly basis for the days the employee would have worked.

Thank you.

If you really calculate, all payments are prorated when in loss of pay. For example, a bonus; he gets less for the salary earned only.

The question of making salary for excess leave does not arise. It has to be treated as loss of pay/absence. When calculating salary, all components which are part of the monthly salary have to be taken into consideration based on salary payable days. Annual benefits should be paid on a pro-rata basis.