Is It Fair to Include Leave Salary in CTC Without Offering Paid Leave? How to Address This Issue?

Salary Breakup and Leave Policy Concerns

My salary breakup is: Basic 27,000, special allowance 2,850, HRA 8,100, conveyance 10,800, medical 2,083 (25,000 pa), LTA 2,250 (27,000 pa), ex-gratia 2,250 (27,000 pa), leave salary 4,667 (28 days).

They have given me a CTC of 7.2, but leave salary is also one of the components. If I take 28 days leave, I will not get 4,667 multiplied by 12, i.e., Rs. 56,000. This also means a 7.2 CTC with 0 paid leave. It seems unfair to not even have a single paid leave. On the surface, they show they are giving us 28 days leave, but they are also deducting the pay. How fair is this? How do I tackle it? What could be other alternatives? I am working with an NGO.

Dear Anamikaatwork,

Leave salary is not deducted from your payment. On the contrary, leave with pay is quantified on PM/PA basis and included in your CTC.

Thank you.

Dear Srinath,

For every leave I take, they are deducting my salary. They had promised me a CTC of 7.2 LPA. They are fooling me with the CTC. They have kept my salary on hold and deduct if I take leave. This means I have a CTC of 7.2 LPA with zero paid leave.

They are paying me 6.6 lakh, and 56,000 will be paid if I don't take any leave. This is so unfair. They can deduct TDS, but leave salary.

When you were appointed, the order of appointment would have mentioned your pay, other allowances, and leave particulars such as Casual Leave (CL), Earned Leave, and Medical Leave, as per your organization's procedure.

Understanding total emoluments

Your total emoluments, which are the cost to the company, include Earned Leave of 30 days a year, along with Gratuity (provided you work continuously for 5 years, you will receive this gratuity).

Leave pay deductions

From the above, it is inferred that your leave pay is deducted from your salary. Please check if you are on a loss of pay. If not, are you utilizing your casual leave within the limits? Since the organization has committed in writing that you would be paid the Earned Leave when you retire or resign as per procedures, you have every right to ask and pursue legal action if necessary.

Reviewing agreements

However, it cannot prevent you from showing CTC inclusive of Earned Leave or paid leave. So, once again, check your agreements to understand the facilities your organization provides you.

Ensuring policy compliance

Since you accepted the appointment as per their policy, you must ensure they follow their policy. If they do, then blaming the organization is not acceptable.

So, check once again all the pros and cons.

Thanking you

Thank you for the reply.

I have not been granted any earned leave. They simply provided me with the breakdown mentioned above and 28 days of leave. Initially, I assumed it was paid leave, but two days ago, they clarified that the 28 days are part of your Cost to Company (CTC) package, and that is the only leave allotted. If you utilize all 28 days, you will not receive the equivalent of 56000 from your 7.2 CTC. Essentially, I now understand that they have offered me a CTC of 7.2 with no paid leave entitlement. There is no provision for earned leave in this NGO.