Hi,
How does PL encashment work in companies? Does it need to be calculated on the basic or on gross? Does PL encashment need to be deducted with both PF and ESI? Please clarify these issues.
Regards,
Chitra
From India, Madras
Acknowledge(0)
Amend(0)
How does PL encashment work in companies? Does it need to be calculated on the basic or on gross? Does PL encashment need to be deducted with both PF and ESI? Please clarify these issues.
Regards,
Chitra
From India, Madras
Acknowledge(0)Amend(0)
Dear Chitra,
PL encashment is done on BASIC + DA only. No deduction should be made on PL encashment. PL encashment depends on company policy. Each company will allow for some accumulations over & above they will encash. Also, on exit while doing Full & Final Settlement, whatever PL is left over will be encashed.
Regards, SIVA
From India, Hyderabad
Acknowledge(0)Amend(0)
2PL encashment is done on BASIC + DA only. No deduction should be made on PL encashment. PL encashment depends on company policy. Each company will allow for some accumulations over & above they will encash. Also, on exit while doing Full & Final Settlement, whatever PL is left over will be encashed.
Regards, SIVA
From India, Hyderabad
Acknowledge(0)Amend(0)
Chitra, PL is calculated on monthly salary. Equation: Monthly Salary (Basic+DA) x PL Days/30 Days PF and ESIC is not deductible on this amount. Vishal
From India, Vadodara
Acknowledge(0)Amend(0)
From India, Vadodara
Acknowledge(0)Amend(0)
hom much should be the minimum pl days as per Shops & establishment & what is the basis of calculation of days i.e. on actual days present or total working days or 1pl for 20days/15days etc
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Dear,
First of all, whether PL encashment is done on basic or gross depends upon your company policy because the law is not clear on it. Some companies pay it on gross, and some on basic.
The number of leaves as per the Shop and Establishment Act is not fixed, as different states have different quantum of leave.
Thank you.
JS Malik
From India, Delhi
Acknowledge(0)Amend(0)
First of all, whether PL encashment is done on basic or gross depends upon your company policy because the law is not clear on it. Some companies pay it on gross, and some on basic.
The number of leaves as per the Shop and Establishment Act is not fixed, as different states have different quantum of leave.
Thank you.
JS Malik
From India, Delhi
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x