Hi Please tell me how do calculated Leave Encashment ? This is calculated upon the basis of basic or gross salary?
From India, undefined
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From India, undefined
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Hi Deep Chakraborty,
Good evening!
You may calculate leave encashment based on the basic salary, as this is a common practice in current payroll procedures. Leave encashment is calculated as Basic Pay / 30 * Number of leaves for encashment.
Note: Please refer to your company's HR manual or standing orders to ensure the correct method and rules for calculating this in your company.
All the best.
From India, Ahmedabad
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32Good evening!
You may calculate leave encashment based on the basic salary, as this is a common practice in current payroll procedures. Leave encashment is calculated as Basic Pay / 30 * Number of leaves for encashment.
Note: Please refer to your company's HR manual or standing orders to ensure the correct method and rules for calculating this in your company.
All the best.
From India, Ahmedabad
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Leave encashment is based on the standing order/HR policy of the company. Some companies pay leave encashment as part of the gross salary, while others pay based on basic + DA. It varies from company to company, but in normal practice, it should be paid based on basic + DA. Encouraging employees to take leave instead of accumulating it for encashment can be achieved by paying based on basic and DA.
From India, Bangalore
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From India, Bangalore
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Hi Deep,
Leave encashment is not legally correct, though not illegal. Are you asking about the payment of leave wages? Please narrate the circumstances a bit to enable an appropriate reply.
Shrikant Prabhudesai
shrikant_pra@yahoo.com
From India, Mumbai
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Leave encashment is not legally correct, though not illegal. Are you asking about the payment of leave wages? Please narrate the circumstances a bit to enable an appropriate reply.
Shrikant Prabhudesai
shrikant_pra@yahoo.com
From India, Mumbai
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x