Hi Please tell me how do calculated Leave Encashment ? This is calculated upon the basis of basic or gross salary?
From India, undefined
From India, undefined
@ Deep Chakraborty,
Good Evening.....!!!!!
You may calculate leave Encasement on the BASIC salary, generally this is a trend in the current pay-rolling practices.
Leave Encasement = Basic Pay / 30 * No.leaves for encasement
Note : Refer your company HR manual or standing order to ensure the proper way & rule to calculate it in YOUR COMPANY.
All the best.
From India, Ahmedabad
32Good Evening.....!!!!!
You may calculate leave Encasement on the BASIC salary, generally this is a trend in the current pay-rolling practices.
Leave Encasement = Basic Pay / 30 * No.leaves for encasement
Note : Refer your company HR manual or standing order to ensure the proper way & rule to calculate it in YOUR COMPANY.
All the best.
From India, Ahmedabad
Leave encashment is based on the standing order / HR policy of the company. Some companies are paying leave encashment in gross salary and some other companies are paying on basic + DA.
It varies to companies to companies. But in normal practice it should be paid on basic + DA.
If we pay on basic and DA , then it will encourage the employees to take leave instead of accumulating the same for encashment.
From India, Bangalore
It varies to companies to companies. But in normal practice it should be paid on basic + DA.
If we pay on basic and DA , then it will encourage the employees to take leave instead of accumulating the same for encashment.
From India, Bangalore
Hi Deep,
Leave encashment is not legally correct; though not illegal. Are you asking about payment of leave wages? Narrate the circumstances a bit to enable a appropriate reply.
Shrikant Prabhudesai
shrikant_pra@yahoo.com
From India, Mumbai
Leave encashment is not legally correct; though not illegal. Are you asking about payment of leave wages? Narrate the circumstances a bit to enable a appropriate reply.
Shrikant Prabhudesai
shrikant_pra@yahoo.com
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
PF Contribution on Leave Encashment - Clarification by EPFO.pdf
EPFO Circular Leave Encashment.jpg