Can anybody tell me how many days are to be counted in a financial year for leave encashment? In our company, we have a total of 48 days of leave per year (PL, CL, SL, etc.). From these, how many days should be taken for leave encashment if no leave has been availed by any employees of my firm? Do I have to make leave payment for all the 48 days, or are there any restrictions on the number of days? Is there any act or rules/regulation regarding it?
Can anybody provide me with the details along with the formula to calculate the leave encashment? Also, do we have to calculate the number of days at 26 or 30? Please advise.
Alex
From India, Mumbai
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Can anybody provide me with the details along with the formula to calculate the leave encashment? Also, do we have to calculate the number of days at 26 or 30? Please advise.
Alex
From India, Mumbai
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can any body pl tell me abt leave encashment how many days are applicable per year everything abt it pl
From India, Mumbai
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From India, Mumbai
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Hi,
You mention that you are entitled to around 48 days of leave for a calendar year. This implies that, on average, an employee is entitled to 4 days of leave per month.
In our company, there is a limit of up to a balance of 20 days of leave that can be carried forward to the next year. Any balance beyond this limit would be encashed based on the basic salary.
For example, *(as per your company), if at the year-end you have a balance of 25 days of leave that you have not utilized, 20 days can be carried forward to the next year. Therefore, your opening leave balance for the next year would be 20 + 48 (new leaves for the new year) = 68 days until the end of the next year.
The remaining 5 days of leave will be encashed based on the basic salary. If your basic per month is Rs. 15,000, you can calculate as follows:
Rs. 15,000 (per month basic salary) / 30 (days in a month) = Rs. 500 per day
The encashable leave is 5 days, so you can multiply 500 x 5 = Rs. 2500. This amount will be paid to you for the 5 days of encashable leave.
- Ishita
From India, Mumbai
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5You mention that you are entitled to around 48 days of leave for a calendar year. This implies that, on average, an employee is entitled to 4 days of leave per month.
In our company, there is a limit of up to a balance of 20 days of leave that can be carried forward to the next year. Any balance beyond this limit would be encashed based on the basic salary.
For example, *(as per your company), if at the year-end you have a balance of 25 days of leave that you have not utilized, 20 days can be carried forward to the next year. Therefore, your opening leave balance for the next year would be 20 + 48 (new leaves for the new year) = 68 days until the end of the next year.
The remaining 5 days of leave will be encashed based on the basic salary. If your basic per month is Rs. 15,000, you can calculate as follows:
Rs. 15,000 (per month basic salary) / 30 (days in a month) = Rs. 500 per day
The encashable leave is 5 days, so you can multiply 500 x 5 = Rs. 2500. This amount will be paid to you for the 5 days of encashable leave.
- Ishita
From India, Mumbai
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
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