Hi! Is there any policy regarding leave encashment in case of an increment? Can somebody please tell me if, in the case of leave encashment, we need to calculate the (EL/PL) amount based on arrears of increments or not?
Waiting for your positive response.
Thanks & Regards,
Vartika
From India, Delhi
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Waiting for your positive response.
Thanks & Regards,
Vartika
From India, Delhi
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Hi,
Please refer to the definition of leave with wages, which is nothing but EL/PL. On any particular day, whatever salary is payable to the employee, the same applies to his accumulated leave as well.
For example, let us assume that the employee has a 30-day leave balance between 1/1/2010 and 30/6/2010, and his salary for the purpose of leave encashment is 10,000/- per month. If his salary is revised retrospectively from 1/4/2010 to 11,000/- per month, then the same becomes applicable for leave encashment as well from 1/4/2010. This does not require a separate policy as this becomes a specific requirement.
Kind regards,
Dayanand L Guddin
From Singapore, Singapore
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31Please refer to the definition of leave with wages, which is nothing but EL/PL. On any particular day, whatever salary is payable to the employee, the same applies to his accumulated leave as well.
For example, let us assume that the employee has a 30-day leave balance between 1/1/2010 and 30/6/2010, and his salary for the purpose of leave encashment is 10,000/- per month. If his salary is revised retrospectively from 1/4/2010 to 11,000/- per month, then the same becomes applicable for leave encashment as well from 1/4/2010. This does not require a separate policy as this becomes a specific requirement.
Kind regards,
Dayanand L Guddin
From Singapore, Singapore
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Leave Policy.doc