Hi all, I hope you are in good health. I have been serving as the HR Manager at an IT software company for 7 years. Our company operates under the Shop & Establishment Act, and I would like to clarify the correct calculation for earned leave encashment during an employee's full and final settlement.
Earned Leave Encashment Calculation
Is it (basic + DA)/26 * number of earned leave days or (basic + DA)/30 * number of earned leave days? Please advise.
Thank you.
From India, New Delhi
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1Earned Leave Encashment Calculation
Is it (basic + DA)/26 * number of earned leave days or (basic + DA)/30 * number of earned leave days? Please advise.
Thank you.
From India, New Delhi
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Since the employees in your companies are not daily rated, you may adopt the second calculation in your post.
From India, Aizawl
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From India, Aizawl
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Division of basic + DA by 26 days to arrive at per diem avg is right for gratuity purposes. Whereas for other purpose it is good to adopt 30 days average.
From India, Bangalore
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From India, Bangalore
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Thanks for the valuable response.is this mentioned under Shop & Establishment Act??if yes please help me in which section it is there.
From India, New Delhi
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From India, New Delhi
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Brief Kerla Shop & Establishment Act.pdf
SELF-CERTIFICAT E PROFORMA UNDER THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958.doc