Struggling with Gratuity and Leave Encashment: How Should Salary Calculations Be Done?

Thank you, sir, for the gratuity clarification. Further, I would like to request you to kindly inform me whether the calculation of the salary is based on the total amount (consolidated salary) or based on a percentage, e.g., 40% or less.

Leave Encashment Issue
One more thing, I had 125+ leaves to my credit. In 2014-15, a letter was given to me/staff (without our consent) stating that we had voluntarily sacrificed the leaves. They provided Rs. 2000/- for that. I did not submit any letter to them, and now I am requesting leave encashment, but they are refusing to do so.

Kindly provide guidance.

Thank you.

I don't know the background of the case. I believe that you got a solution for your query regarding gratuity. Regarding the calculation of gratuity, I would say that it should be based on salary. Salary means the total salary as per the contract of employment, which is treated as salary for the deduction of loss of pay.

Please follow the link:
[Madhu T K: Payment of Gratuity and Gratuity Qualifying Salary](http://madhu-t-k.blogspot.com/2019/10/payment-of-gratuity-and-gratuity.html)

Regarding leave encashment, the act that deals with leaves should contain a limit to the maximum leaves that can be carried forward. It is not more than 36 under any state Act. Therefore, beyond 24 or even 36, it is not possible to get encashment.