Leave Encashment at the time of F& F calculated on BAsic +DA or on Gross Salary of Employee?

ravichache
Dear Sir, I want to know that Leave Encashment at the time of F& F calculated on BAsic +DA or on Gross Salary of Employee. We normally calcuted on Basic + DA but Auditor marked not complied.
vmlakshminarayanan
Hi,

The leave encashment is made on the last basic pay and dearness allowance (DA) and not on Gross salary.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute