Hello, I need clarity about the leave encashment payment formula.
Leave Encashment Payment Formula
We are paying leave encashment based on Basic/26, but our client is asking to pay Basic/30 instead of 26 days. There are no specific rules about leave encashment calculation. Here we are paying the monthly salary based on a particular month (e.g., if a person is on leave for 2 days without pay in April, then we calculate gross wages /30 * 28 days). Is this correct or not?
Please help me with any notifications or guidance.
Regards,
Dwarika P. Nautiyal
From India, New Delhi
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4Leave Encashment Payment Formula
We are paying leave encashment based on Basic/26, but our client is asking to pay Basic/30 instead of 26 days. There are no specific rules about leave encashment calculation. Here we are paying the monthly salary based on a particular month (e.g., if a person is on leave for 2 days without pay in April, then we calculate gross wages /30 * 28 days). Is this correct or not?
Please help me with any notifications or guidance.
Regards,
Dwarika P. Nautiyal
From India, New Delhi
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
SC -PF judgment on No PF on Leave encashment.doc
EPFO Circular Leave Encashment.jpg