Why Are Only 240 Days Used for EL Calculation Out of 365? Seeking Clarification

Dear Members, Please clarify my doubt regarding the EL calculation. I want to ask why, when we have 365 days in a year, we only consider 240 days for calculating EL. The formula being used is 240/20 = 12, resulting in a total of 12 EL days provided.

My question is, out of the 365 days in a year, why are only 240 days considered for the calculation of EL? If we subtract 240 from 365, we get 125 days. Can you please explain which specific 125 days are excluded from the calculation of EL and what rule dictates the use of 240 days for EL calculation?

Your assistance in clarifying this matter would be greatly appreciated.

Thank you.

The 240-day calculation is for the purpose of eligibility, i.e., to be eligible, one has to put in 240 days of continuous service. Once 240 days of service are completed in a year, then 12 days of EL will get added.

It is like this.

First-time eligibility

First-time eligibility is after 240 days of working in an establishment.

Earned leave accumulation

Thereafter, Earned Leave shall get accumulated as under:

a. In case of establishments registered under The Shop & Establishment Act - @ 1 Earned Leave for every 12 days worked.

b. In case of establishments registered under The Factory & Boiler Act - @ 1 Earned Leave for every 20 days worked.

Calculation of Earned Leave

And the calculation shall be like this:

1. Number of days in a year - 365 days
2. Less: Weekly Holidays - 52 days
3. Less: National Holidays - 3 days (26th January, 15th August & 2nd October)
4. Less: Other Paid holidays for festivals like Diwali, Holi, Eid, Raksha Bandhan, Ganesh Chaturthi and/or other festivals, election day, heavy rains, strike, bandh, etc. - 10 days per year
5. Balance Working Days - 300 days
6. Earned Leave - Max. 25 days in case of establishments registered under The Shop & Establishment Act depending upon the number of days actually worked
7. Earned Leave - Max. 15 days in case of establishments registered under The Factory & Boiler Act depending upon the number of days actually worked.

Regards, Jawaharlal Moondra
[Phone Number Removed For Privacy-Reasons]