Salary Deductions for Leave Without Pay

I would like to know what deductions are to be made from the 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 their medical and LTA reimbursement as well, or is it only the basic pay that is deducted? Is there any specific company act for deciding this?

Regards,
Vidya

From India, Delhi
Acknowledge(0)
Amend(0)

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
Acknowledge(0)
Amend(0)

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,

Regards,
R MOHAN

From India, Madurai
Acknowledge(0)
Amend(0)

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 14,650, and the gross salary is 13,000. 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
Acknowledge(0)
Amend(0)

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

Madhu.T.K

From India, Kannur
Acknowledge(0)
Amend(0)

CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.







Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.