Hi, I have quarry about enmeshment of Earned leave kindly suggest what is the formula for calculating EL is it Basic/26*No El or Basic/30* No of EL as per law pls suggest
From United States, Chicago
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11From United States, Chicago
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Dear Kavitha,
You may notice the practice of Leave Encasement in most companies where Paid Leave (P.L), Casual Leave (C.L), and Sick Leave (S.L) are not available. Many companies provide Leave Encasement in lieu of these types of leave to their technicians.
For further details, please find the attached copy.
Thanks,
Mr. Ram
+918790292222
From India, Hyderabad
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You may notice the practice of Leave Encasement in most companies where Paid Leave (P.L), Casual Leave (C.L), and Sick Leave (S.L) are not available. Many companies provide Leave Encasement in lieu of these types of leave to their technicians.
For further details, please find the attached copy.
Thanks,
Mr. Ram
+918790292222
From India, Hyderabad
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Dear Ram,
Thank you for your response, but my question is still unanswered. How are management liable to pay the government if they provide leave encashment to employees? Alternatively, is it better to classify leaves under CL, SL, PL - so the management is less liable for leave encashment or carry forward?
I hope I have articulated my query correctly.
Thanks,
Kavitha
From India, Surat
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Thank you for your response, but my question is still unanswered. How are management liable to pay the government if they provide leave encashment to employees? Alternatively, is it better to classify leaves under CL, SL, PL - so the management is less liable for leave encashment or carry forward?
I hope I have articulated my query correctly.
Thanks,
Kavitha
From India, Surat
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Dear Kavitha,
Your question is well-conceived, and there is no need to be liable to pay the government. It basically depends on the company policy and practice. In some companies, they provide PL, CL, and SL only to staff and conceive the leave encasement only for technicians. This helps control productivity and practices.
MR. RAM
+918790292222
From India, Hyderabad
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Your question is well-conceived, and there is no need to be liable to pay the government. It basically depends on the company policy and practice. In some companies, they provide PL, CL, and SL only to staff and conceive the leave encasement only for technicians. This helps control productivity and practices.
MR. RAM
+918790292222
From India, Hyderabad
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Dear Kavitha,
As Mr. Ram said, depending on the company policy, Leave encashment is calculated. In your company, the policy is available. So, according to your policy, Leave encashment has been calculated based on Basic X No. of Leaves / 26 days that we need to consider.
Still, if you have any doubts, please refer to Section 10(10AA) as per the Income Tax Act, 1961.
If you have any queries, please call me.
Suresh VVN Payroll Manager - 9848386476
From India, Hyderabad
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As Mr. Ram said, depending on the company policy, Leave encashment is calculated. In your company, the policy is available. So, according to your policy, Leave encashment has been calculated based on Basic X No. of Leaves / 26 days that we need to consider.
Still, if you have any doubts, please refer to Section 10(10AA) as per the Income Tax Act, 1961.
If you have any queries, please call me.
Suresh VVN Payroll Manager - 9848386476
From India, Hyderabad
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Not receiving regular mails of citeman news letter past one month into my mail ID. Please resume the supply and oblige. R K SINGH
From India, Delhi
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From India, Delhi
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I also have same query please reply. Is the formula different for White coller and Blue coller?
From India, Pune
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From India, Pune
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We are an authorized dealer for selling TATA cars, and we also have an authorized service center for the same. My question is, are leave encashment and leave policies applicable to service industries like us?
From India, Mumbai
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From India, Mumbai
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Secondly, I would like to know about the leave encashment as it is said that there are 15 days of EL for every calendar year. I just want to clarify if these 15 days of EL are separate from CL/SL/PL, weekly offs, and public holidays.
From India, Mumbai
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From India, Mumbai
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Hello Seniors,
I have a question. I have joined a new company, and they provide 22 leaves in a year. They do not have any bifurcation for it; all are PL, and only 5 leaves can be encashed, that too during the end of the financial year. Additionally, next year's leaves also start at the beginning of the new financial year.
I would like to know what the government rule says because, as per my knowledge, it's based on the calendar year.
Please guide. I anticipate your help.
Regards,
Today From India, Mumbai
From India, Mumbai
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I have a question. I have joined a new company, and they provide 22 leaves in a year. They do not have any bifurcation for it; all are PL, and only 5 leaves can be encashed, that too during the end of the financial year. Additionally, next year's leaves also start at the beginning of the new financial year.
I would like to know what the government rule says because, as per my knowledge, it's based on the calendar year.
Please guide. I anticipate your help.
Regards,
Today From India, Mumbai
From India, Mumbai
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Hi Shilpa,
Please let me know if you are working in the Service Sector or a Manufacturing unit.
The Leave Policy is also applicable based on the type of company and its performance, i.e., The Factory Act - 1948 and the Shop & Establishment Act.
Under the Factory Act - Section - 79 (i) (ii):
1. One day for an adult worker for every twenty days of work performed by him during the previous calendar year.
2. One day for a child worker for every fifteen days of work performed by him during the previous calendar year.
The maximum carry forward leave is 30.
For the Shop & Commercial Establishment Act - 1948, you can refer to the state legislation. Feel free to reach out to me for any further clarification.
Have a great day.
Regards,
Seetarama Moger - 8790292222
From India, Hyderabad
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Please let me know if you are working in the Service Sector or a Manufacturing unit.
The Leave Policy is also applicable based on the type of company and its performance, i.e., The Factory Act - 1948 and the Shop & Establishment Act.
Under the Factory Act - Section - 79 (i) (ii):
1. One day for an adult worker for every twenty days of work performed by him during the previous calendar year.
2. One day for a child worker for every fifteen days of work performed by him during the previous calendar year.
The maximum carry forward leave is 30.
For the Shop & Commercial Establishment Act - 1948, you can refer to the state legislation. Feel free to reach out to me for any further clarification.
Have a great day.
Regards,
Seetarama Moger - 8790292222
From India, Hyderabad
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
SC -PF judgment on No PF on Leave encashment.doc
EPFO Circular Leave Encashment.jpg