Rules and Regulations for the Employees who are serving in Notice Period

Dear Agniputhran
I am not in consent with your statement "If there is any adjustment with the earned leave accumulated by the employee for the notice period, then it has to be taken as Basic + DA only." it purely depends on the encashment policy of the company which would have been circulated at the employee's joining the company or mutually agreed upon thereafter. There is no rule where it states the the EL/PL need to be encashed only on Basic+DA. Few companies encash on Gross pay too.

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It seems; there is a confusion in the question; whether during notice period; reduced salary calculated only on Basic to be paid or not.
Like on all other period, the salaries are tobe calculated on Basic, Da, HRA, Con.Allnce & Spl.Allnc. which is called as Gross Salary or net salary excluding PF, ESI, other Allowances.
Similarly, PL encashment tobe calculated on Gross salary & not on Basic alone. If an employee has 30 days accumulated PL for encashment, he has tobe paid one month Gross Salary as if he has worked during the month and earned the salary for one month. paying only on Basic will be denying his full entitlement. There was already discussion on the subject and I hope; Senior members may correct if there is any change. [Login to view] 29.4.17