Dear Karthik,
Please refer to the Act which is applicable to your establishment and the policy followed by your organization. Usually, Leave Encashment is done at the time of employee exit and the following formula is used:
((Last drawn basic pay+DA)/30)*Number of Earned Leaves to be encashed
In case of workmen, the following formula is also used:
((Last drawn basic pay+DA)/26)*Number of Earned Leaves to be encashed
Regards
Rahul
Dear All,
Is there any specific section defined in factories act for considering Leave encashment Basic+Da only, please share us. I think we need to consider on Gross.
Regards
Shivananda V D
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