Understanding Annual Leave: How Do Wage Exemptions and Ceiling Wages Apply?

Please provide me with details on annual leave, including wage exemptions and the applicable ceiling wage.

Annual leave wages payable to an employee are based on the rate of his monthly wages or gross wages. This is defined in the Factories Act and State Shops Act. There is no question of a ceiling on it.

Thank you, Mr. Shrikant.

I have one more doubt. If an employee is receiving a monthly salary of Rs. 53,000, is this applicable to them as well?

Yes, it should be applicable. Dear Karthik,

No ceiling if he is a manager, and if the company does have a different consideration for them, it should be applicable.

Dear Karthikeyan, I am at a loss to understand the context relating to your query as well as the type of your establishment. If my presumption that your query relates to the situation wherein any employee, by virtue of his quantum of salary/wages, could be exempted from entitlement to annual leave with wages, is correct, then my answer is an emphatic "no" only. In a factory under the Factories Act, 1948, or a Shop or Establishment under the State's Shops and Establishments Act, all people irrespective of their designation or salary exclusively or principally employed within the premises are "workmen" or "Persons Employed" only respectively.

Therefore, since both the above Acts have provisions for annual leave with wages, of course in different names, for the people employed therein, the quantum of their salary or wages does not act as a cap for the enjoyment of the particular leave during their service or its encashment on the termination of their employment.