Query on PL Encashment and Gratuity Calculation
I have a query regarding the calculation of PL encashment in the Full and Final Settlement (FFS) of a staff cadre. Should we consider a 26-day month or a 30-day month? Similarly, when calculating Gratuity, is it appropriate to use a 26-day month or a 30-day month? What are the legal requirements? Please explain.
Regards,
Nitin
From India, Kolhapur
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I have a query regarding the calculation of PL encashment in the Full and Final Settlement (FFS) of a staff cadre. Should we consider a 26-day month or a 30-day month? Similarly, when calculating Gratuity, is it appropriate to use a 26-day month or a 30-day month? What are the legal requirements? Please explain.
Regards,
Nitin
From India, Kolhapur
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Leave encashments are calculated based on Earned/Paid Leave only.
Method of Calculation
Basic Salary per month / 26 * Number of Earned Leaves left. Similarly, while calculating Gratuity, we should consider 26 days a month.
To Calculate Gratuity
Basic Pay + DA * 15/26 * number of years. You can also use the link below for the calculation of gratuity. [Calculate Gratuity](http://ndtvprofit.com/Calculators/gratuity.htm)
Note
Gratuity is payable to any employee only if they serve for a minimum period of 5 years consecutively with their employer. The amount of Gratuity is calculated based on the last average salary drawn/last drawn monthly salary as of the date it is taken into account and the number of years served by an employee.
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72Method of Calculation
Basic Salary per month / 26 * Number of Earned Leaves left. Similarly, while calculating Gratuity, we should consider 26 days a month.
To Calculate Gratuity
Basic Pay + DA * 15/26 * number of years. You can also use the link below for the calculation of gratuity. [Calculate Gratuity](http://ndtvprofit.com/Calculators/gratuity.htm)
Note
Gratuity is payable to any employee only if they serve for a minimum period of 5 years consecutively with their employer. The amount of Gratuity is calculated based on the last average salary drawn/last drawn monthly salary as of the date it is taken into account and the number of years served by an employee.
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Gratuity calculation.doc
LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf