Dear Seniors Kindly let me know what is the formula for calculating Leave Encashment..i will be thankful if u reply me soon.... Thanks Regards Paras Thakur..
From United States, Ashburn
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2From United States, Ashburn
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Dear Paras,
There are two ways of calculation. Some companies pay leave encashment on Basic+DA (Basic Pay), and some pay on gross salary. Please refer to the historical data of your organization to avoid any unnecessary chaos in your organization. It's calculated as follows:
Considering an employee's gross salary is Rs. 20,000, and he has 15 ELs/PLs credited in his leave account. He will be paid Rs. (20,000/26=769.00) (769x15)=Rs. 11535.
Warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)
From India, Delhi
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There are two ways of calculation. Some companies pay leave encashment on Basic+DA (Basic Pay), and some pay on gross salary. Please refer to the historical data of your organization to avoid any unnecessary chaos in your organization. It's calculated as follows:
Considering an employee's gross salary is Rs. 20,000, and he has 15 ELs/PLs credited in his leave account. He will be paid Rs. (20,000/26=769.00) (769x15)=Rs. 11535.
Warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)
From India, Delhi
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x