Hi to all Can any body let me what are the provisions for leave encashment in Mumbai. Further any website from where I can Download Bombay Shops & Establishment Act, 1948. Regards Prasad
From India, Mumbai
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1From India, Mumbai
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Dear Prasad,
The practice to pay leave encashment is almost the same in all industries. The leaves, such as Casual Leave or Privilege Leave, can be encashed. This encashment is taxable under the relevant act. The payment is based on 26 days of working for workmen and 30 days of working for staff. It is computed based on the basic salary + D.A. using the formula:
(Basic + DA) / 30 * number of leave days.
Additionally, the employer should deduct P.F. on encashment.
Regards,
Bhushan
From India, Mumbai
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The practice to pay leave encashment is almost the same in all industries. The leaves, such as Casual Leave or Privilege Leave, can be encashed. This encashment is taxable under the relevant act. The payment is based on 26 days of working for workmen and 30 days of working for staff. It is computed based on the basic salary + D.A. using the formula:
(Basic + DA) / 30 * number of leave days.
Additionally, the employer should deduct P.F. on encashment.
Regards,
Bhushan
From India, Mumbai
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