Leave Encashment Confusion: Should We Use Basic/30 or Basic/26 for Payments?

DP Nautiyal
Hello, I need clarity about the leave encashment payment formula.

Leave Encashment Payment Formula

We are paying leave encashment based on Basic/26, but our client is asking to pay Basic/30 instead of 26 days. There are no specific rules about leave encashment calculation. Here we are paying the monthly salary based on a particular month (e.g., if a person is on leave for 2 days without pay in April, then we calculate gross wages /30 * 28 days). Is this correct or not?

Please help me with any notifications or guidance.

Regards,
Dwarika P. Nautiyal
PALANISANJAY
Leave encashment is calculated as (Basic + Dearness Allowance) / 30.
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