Many employers are paying on Gross, many employers are paying on Basic+DA and there are also many employers who have been paying on 5% of Basic+DA Monthly. which is appropriate?
Hi friend,
I don't understand what you mean by 5% of Basic+DA (did you mean 50% ?) monthly. Generally leave encashment is paid on gross salary (Basic +DA+fixed allowances). This in other words 'what an employee could have drawn had he went on normal, approved leave-with-pay, subject to TDS, if liable.
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