Dear All,
I want your opinion on the following query:
There is a company in Pune that pays a supplementary allowance to all the management staff as one of the components of the salary. They deduct the supplementary allowance on:
1. Notice pay
2. Leave without pay
They pay the supplementary allowance for Privilege Leave, Casual Leave, Sick leave, and for all the paid days. The supplementary allowance is around 30% of the monthly salary.
Now, when the question comes to paying the supplementary allowance for leave encashment at the end of the year or leave encashment after retirement or resignation, they do not include the supplementary allowance.
My question to all of you is:
Is this right?
If yes, why?
If no, then what should the employees do because it is quite a big amount as the leave encashment amounts to more than 140 days.
Thanks,
Clement
From India, Pune
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5I want your opinion on the following query:
There is a company in Pune that pays a supplementary allowance to all the management staff as one of the components of the salary. They deduct the supplementary allowance on:
1. Notice pay
2. Leave without pay
They pay the supplementary allowance for Privilege Leave, Casual Leave, Sick leave, and for all the paid days. The supplementary allowance is around 30% of the monthly salary.
Now, when the question comes to paying the supplementary allowance for leave encashment at the end of the year or leave encashment after retirement or resignation, they do not include the supplementary allowance.
My question to all of you is:
Is this right?
If yes, why?
If no, then what should the employees do because it is quite a big amount as the leave encashment amounts to more than 140 days.
Thanks,
Clement
From India, Pune
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Dear Pawan,
"Leave encashment is calculated in Basic Salary" - Do you have any provisions (I need proof)? Which act can I refer to?
Whether Leave encashment is calculated based on 30 days or 26 days? I need to know the specific provisions.
Brother
From India, Madras
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"Leave encashment is calculated in Basic Salary" - Do you have any provisions (I need proof)? Which act can I refer to?
Whether Leave encashment is calculated based on 30 days or 26 days? I need to know the specific provisions.
Brother
From India, Madras
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Dear friends,
Never leave encashment norms are mentioned in the appointment letter. It is a policy matter. Most of the companies encash leave based on gross salary. It was after the introduction of supplementary allowance in 2007 that the company stopped including supplementary allowance for leave encashment.
Regards,
Clement
From India, Pune
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Never leave encashment norms are mentioned in the appointment letter. It is a policy matter. Most of the companies encash leave based on gross salary. It was after the introduction of supplementary allowance in 2007 that the company stopped including supplementary allowance for leave encashment.
Regards,
Clement
From India, Pune
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what is the formula for calculating el is it basic/26*no leave or basic/30*no leave. kindly clerify
From United States, Chicago
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From United States, Chicago
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x