Dear Manju,
It is again depends on the organization policy. In any policy if it is mentioned that the intermediate saturdays / sundays / declared holidays are excluded from the leave taken then you donot have to deduct them from the account. If it is not mentioned anywhere in the policy then yes u have to deduct those leave also from the employees leave account.
From India, New Delhi
32It is again depends on the organization policy. In any policy if it is mentioned that the intermediate saturdays / sundays / declared holidays are excluded from the leave taken then you donot have to deduct them from the account. If it is not mentioned anywhere in the policy then yes u have to deduct those leave also from the employees leave account.
From India, New Delhi
Dear all.
As per the factories act 1948 leave calculation should be based on Basic+da here i will caluculate one Ex for your clarification.
Basic+ Da = 10000
Encashment leave days = 15 days
10000/26*15 days = 5769 Rs.
I hope this will help you for all.
Thanks & Regards
yogeesh
From India, Bangalore
As per the factories act 1948 leave calculation should be based on Basic+da here i will caluculate one Ex for your clarification.
Basic+ Da = 10000
Encashment leave days = 15 days
10000/26*15 days = 5769 Rs.
I hope this will help you for all.
Thanks & Regards
yogeesh
From India, Bangalore
Dear All Help me out in settling leave encashment its new concept fro me Kindly let me the formula
From India, Hyderabad
From India, Hyderabad
Hi,
We have to follow as per company rules, some companies calculate on Gross, but max companies calculate on Basic+DA. In my company we encash once in 2yrs. Encashment and calculations are different from company to company.
with regards,
Ramesh.V
From India, Hyderabad
We have to follow as per company rules, some companies calculate on Gross, but max companies calculate on Basic+DA. In my company we encash once in 2yrs. Encashment and calculations are different from company to company.
with regards,
Ramesh.V
From India, Hyderabad
Hi all,
I had recently joined a IT company having a strenght of around 150 employees.
We do not follow any Leave policy here.
In a year we only 15 days of leave is given to the employees and they are enchased at the end of the FY (April to March). And if an employee take any leave in a month his/ her salary is deducted in that particular month.
As an HR i feel this should be discontinued and we should come up with some Leave Policy. But their other HOD who say that their is no need of Leave Policy or giving leave pro rata wise as it requires to much of man hours to maintain the record, where currently we encash the eligiblity leave to all at the end.
Kindly guide me as what leave policy is followed now is ok. I have dediced to start the same in the new f Year. Also it is an growing organisation.
Request you all to give me your comments.
Thanks in advance.
Kirti
From China, Qinhuangdao
I had recently joined a IT company having a strenght of around 150 employees.
We do not follow any Leave policy here.
In a year we only 15 days of leave is given to the employees and they are enchased at the end of the FY (April to March). And if an employee take any leave in a month his/ her salary is deducted in that particular month.
As an HR i feel this should be discontinued and we should come up with some Leave Policy. But their other HOD who say that their is no need of Leave Policy or giving leave pro rata wise as it requires to much of man hours to maintain the record, where currently we encash the eligiblity leave to all at the end.
Kindly guide me as what leave policy is followed now is ok. I have dediced to start the same in the new f Year. Also it is an growing organisation.
Request you all to give me your comments.
Thanks in advance.
Kirti
From China, Qinhuangdao
Can u pls let me knw the section/notification which allow us to paid it on Basic+DA. regds, Lalit
From India
From India
Dear all,
Here i am giving my opinon, if i wrong please correct me.
According to the factories act Rule 84 to 88(i am not clear on section, please check it out) EL encashment needs to be calculated by basic da and all other allowance including food allowance.
But in order to control the cost all the companies are calculating by basic + da.since the employees work is very important we wont give permission for leave normally. So definetely balance of leaves will be more (may be 36 days,accumulations can be done upto 36days)
This is what the reason all companies are calculating by basic +da.
NB: This was discussed in my company HR meeting and the management agreed to calculate by gross salary.
any clarification please post your scrab.
Regards
S. Marimuthu
From India, Madras
Here i am giving my opinon, if i wrong please correct me.
According to the factories act Rule 84 to 88(i am not clear on section, please check it out) EL encashment needs to be calculated by basic da and all other allowance including food allowance.
But in order to control the cost all the companies are calculating by basic + da.since the employees work is very important we wont give permission for leave normally. So definetely balance of leaves will be more (may be 36 days,accumulations can be done upto 36days)
This is what the reason all companies are calculating by basic +da.
NB: This was discussed in my company HR meeting and the management agreed to calculate by gross salary.
any clarification please post your scrab.
Regards
S. Marimuthu
From India, Madras
Hello, It varies between organizations, depending on the company policy. Leae encashment can be on basic salary or on monthly gross. Neither of them is wrong.
From India, Bangalore
From India, Bangalore
Hi In our concern Leave encashment is calculated on the basic salary and PF is also applicable on the same. Also it comes under the taxable income to the employee.
From India, Madras
From India, Madras
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
EPFO Circular Leave Encashment.jpg