Dear Seniors,

I would like to know what all deductions are to be made in salary in the case of leave without pay. For example, if a person is on leave without pay for 15 days, do we have to deduct his medical and LTA reimbursement as well, or is it that only the basic pay is deducted? Is there any specific company act for deciding this?

Vidya

From India, Delhi
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Normally, such reimbursements will be a particular percentage of the basic salary or gross salary, and these benefits will be included in the CTC. Additionally, these payments will be made annually or twice a year. In such cases, a proportionate deduction shall be made to determine the actual entitlement.

Regards, Madhu.T.K

From India, Kannur
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That depends on whether the allowances are based on a percentage of the basic pay or are of a fixed type, such as a flat rate of allowances. For this purpose, you will need to check your own organization's pay structure for the employees.
From India, Delhi
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We are under the wrong notion that we can sanction leave beyond what is provided in the Standing Orders, Factories Act, Shop Act, or Appointment order. In case an employee exhausts all his eligible leave and applies for leave, his absence can be marked as "AA" (Authorised Absence) if the same can be permitted. In all other cases, his absence will have to be treated as "UA" (Unauthorised Absence). In cases of absence on medical grounds (ESI), his absence can be marked as "MA" (Medical Absence).

N Nataraajhan, Sakthi Management Services

From India, Bangalore
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Dear Natarajan,

Have you actually understood what the query was and what reply you are giving? The querist has not asked for the difference between authorised absence, unauthorised absence, and medical absence.

From India, Delhi
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Dear Vidya,

The medical facility is an allowance granted to the employee for their well-being to serve the company for its well-being. If the employee does have some leave in their credit, the question doesn't arise at all. Once a person is appointed on a monthly salary basis, other payments like LTA and medical allowances are to be allowed to the employees since these payment factors were arrived at on the basis of motivation to employees. If an employee goes on very long leave, say 3 months or more, then the case has to be dealt with from a different standpoint. However, you have to check your company's prevailing guiding principles/rules.

Wishing you the best solution,

R MOHAN

From India, Madurai
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Hi all,

I have to process salary payments for all employees, but I am unsure about the deduction for absent days. For example, one employee's CTC is 14650, and the gross salary is 13000. I need to know how much should be deducted from his salary and the calculation process. The employee was present for 23 days out of 30, and I have to pay for those 23 days. Please advise on the correct deduction amount.

Thank you for your prompt response.

From India, Pune
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Hope that CTC includes employer's share of PF/ESI and amount payable as bonus, gratuity, etc. If so, the actual salary is gross salary, i.e., Rs 13,000, on which you have to deduct the LOP.

Madhu.T.K

From India, Kannur
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