How Are Salary Deductions Handled for Leave Without Pay in India? Seeking Clarity on Rules and Practices

Urgent Queries Regarding Leave Without Pay and Salary Deductions

Please reply to the following urgent queries:

1. If one's leave without pay from June 20, 2012, continues until July 02, 2012, will the salary deduction for July 01 (Sunday) be made or not? Please confirm if, during the said leave without pay period, the salary deductions will be for 11 days (excluding 2 Sundays) or 13 days (including 2 Sundays). Kindly provide a reference to the rule, if any.

2. Common Rules for Salary Deductions in India

What are the common rules for salary deductions for leave without pay across the industry in India, especially in the Transport or Logistics industry in Mumbai/Maharashtra?

3. Inclusion of Sundays and Holidays in Salary Deductions

Does the salary deduction for leave without pay include Sundays and holidays that are suffixes, prefixes, or fall between the leave without pay period? In other words, will the deduction be based only on the days of absence from work, or will it include Sundays or other holidays?

4. Calculation of Per-Day Salary for Deductions

When making such deductions, is the per-day salary calculated based on 31 or 30 days?

Waiting for your valuable responses...

Hi Anonymous,

If an employee takes leave from Saturday to Monday, where Sunday is the weekly off day, then Sunday should not be counted as leave. Hence, only 2 leaves should be counted.

For all industries, 21 days of casual and PL leaves are allowed for all staff who worked for 240 days per annum.

Salary calculation should be done based on 26 days.

With Regards,
Prasad J
Email: prasad@greenmail.net

Dear Prasad,

Is there any law that specifies 21 days of casual and PL (paid leave) are allowed? Additionally, the salary calculation is currently not on the 26th; it should be done on the 30th or 31st, inclusive of weekly offs.

Thank you.