Hi, in my company we have fixed slabs for leave travel allowance. Though there is no fixed rule, but as a policymatter we are paying the LTA grade wise during any time of the calender year.
But now, if an employee is resigning during April also, they are paying LTA for that year which i think we should not.
Will it be correct to pay the LTA after completion of the financial year.
Please suggest.
KRISHNARAJ P R
From India, Madras
3But now, if an employee is resigning during April also, they are paying LTA for that year which i think we should not.
Will it be correct to pay the LTA after completion of the financial year.
Please suggest.
KRISHNARAJ P R
From India, Madras
LTA is generally paid as per the Financial year Apr 1 of the current year to march 31 of subsequent year. Eg: Apr 1, 2007 to march 31, 2008.
This is for eligibility calculation. In the middle if an employee seperates the company then the amount is pro rated for the months he has worked.
Eg: Eligibility is Rs. 1000/- for this year.
His LWD is Sep 30, 2007.
Then he will be paid only 1000/12 X No of months worked (April to Sep) ie., 6 months.
So he will be paid only Rs. 500.
Hope this clarifies !
Regards
From India
This is for eligibility calculation. In the middle if an employee seperates the company then the amount is pro rated for the months he has worked.
Eg: Eligibility is Rs. 1000/- for this year.
His LWD is Sep 30, 2007.
Then he will be paid only 1000/12 X No of months worked (April to Sep) ie., 6 months.
So he will be paid only Rs. 500.
Hope this clarifies !
Regards
From India
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Leave Travel Allowance.doc
The Ins & Outs of Leave Travel Allowance.pdf