Hi seniors, Have a question. If we have leave encashment on basic salary, then can we have leave deduction also on basic salary only. Is it necesary to have deduction on gross only ?
From India, Mumbai
Acknowledge(0)
Amend(0)
2From India, Mumbai
Acknowledge(0)Amend(0)
Leave deductions are merely done on gross salary. Yes its necessary that deduction is done based on gross rather than basic salary. - Babu
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
No, deductions are done only on gross pay. We can't calculate deductions based on basic pay. Leave salary for the year will be calculated on basic pay. Rules play a significant role! Almost all concerns are following this pattern!
From India, Chennai
Acknowledge(0)Amend(0)
From India, Chennai
Acknowledge(0)Amend(0)
Understanding Leave Encashment and Leave Deduction
Leave encashment is a facility offered to employees to receive monetary benefits from their accumulated leave. Leave deduction is different, as the employee did not work during the deduction period. Therefore, only gross pay shall be considered. Both cases cannot be correlated.
Regards,
R. Ponraj
From India, Lucknow
Acknowledge(0)Amend(0)
Leave encashment is a facility offered to employees to receive monetary benefits from their accumulated leave. Leave deduction is different, as the employee did not work during the deduction period. Therefore, only gross pay shall be considered. Both cases cannot be correlated.
Regards,
R. Ponraj
From India, Lucknow
Acknowledge(0)Amend(0)
hi Leave deductions are merely done on gross salary. without only travel allowence. reg hd gowda
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Leave Encashment and Salary Deductions
Encashment leave is enforced as specified by the Factories Act, according to which the wage is defined as Basic & DA. In contrast, the loss of pay is affected on the gross salary as per the Labour Act.
Hope this is clear.
Regards,
PVVB KUMAR
From India, Kakinada
Acknowledge(0)Amend(0)
Encashment leave is enforced as specified by the Factories Act, according to which the wage is defined as Basic & DA. In contrast, the loss of pay is affected on the gross salary as per the Labour Act.
Hope this is clear.
Regards,
PVVB KUMAR
From India, Kakinada
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Leave Encashment & Salary Calculation.xls x
Leave Salary encashment on Retirement etc.- Exemption.docx
PF Contribution on Leave Encashment - Clarification by EPFO.pdf