Please advise if we appoint a candidate with a CTC of Rs 1 lakh, and during his employment, he takes four days of leave in a month. Can we allow him to take an additional four days of leave, or should we deduct these leave days from his CTC?
Please advise.
Regards.
From India, Delhi
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1Please advise.
Regards.
From India, Delhi
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If the employee has joined and is on probation, then 4 days would be deducted. However, if there is a policy allowing leave during the probation period, then you may consider granting the leave.
On the other hand, if the employee is confirmed, they would have a leave balance, so no deduction would be necessary. This depends on the company policy.
Also, confirm whether the leave was approved by the management.
From India, Mumbai
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On the other hand, if the employee is confirmed, they would have a leave balance, so no deduction would be necessary. This depends on the company policy.
Also, confirm whether the leave was approved by the management.
From India, Mumbai
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CTC is drawn to get an idea about the cost to the company. However, when the salary deduction in lieu of leave is calculated, it is always based on the monthly salary before the deduction of PF/ESIC/PT, etc.
For example, if a person's CTC is 1L/A and the monthly gross salary is Rs. 6000, then the salary for 1 day is calculated based on 6000 divided by the number of days in the month. Subsequently, the rest is calculated based on this 1-day salary.
When granting leave for 4 days, as Roshani mentioned, it is entirely based on the company's policy.
If you have any further queries, feel free to ask.
Regards,
Pranali G
From India, Mumbai
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For example, if a person's CTC is 1L/A and the monthly gross salary is Rs. 6000, then the salary for 1 day is calculated based on 6000 divided by the number of days in the month. Subsequently, the rest is calculated based on this 1-day salary.
When granting leave for 4 days, as Roshani mentioned, it is entirely based on the company's policy.
If you have any further queries, feel free to ask.
Regards,
Pranali G
From India, Mumbai
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Understanding CTC and Leave Deductions
CTC is related to gross salary. Basic pay and admissible allowances are part of the CTC. From your question, it appears the person is a new entrant and has not earned any leave. Then calculate the basic pay for 26 days (if it is a 30-day month) or 27 days (31 days in a month) and allow the admissible allowance accordingly.
Regards,
Harjeet Walia
From India, Bangalore
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CTC is related to gross salary. Basic pay and admissible allowances are part of the CTC. From your question, it appears the person is a new entrant and has not earned any leave. Then calculate the basic pay for 26 days (if it is a 30-day month) or 27 days (31 days in a month) and allow the admissible allowance accordingly.
Regards,
Harjeet Walia
From India, Bangalore
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Gratuity-Leave calculation on CTC-Rev..xls
Leave Policy.doc