Earned leave will be calculated as = Basic/30*No. of earned EL. There is no role of DA while calculation total amount of earned leave.
From India, Noida
1From India, Noida
Dear All, Calculation of Earned Leave should be on Gross Salary of 26 days. Formula should be for encashment of Leave = Gross Salary * No. of Earned Leave during the period/26. ANKUR RASTOGI
From India, New Delhi
From India, New Delhi
factories act clearly states wages including all allowamces need to be paid. The labor acts do not recognize the term basic salary.
From India, undefined
From India, undefined
As per Factory Act- EL is earned as under:
for every 20 work days 1 EL is earned. And it is applicable to avail in the same in next calendar year or after 240 days in the same calendar year. It is accumulated up to 30 or more depending upon state rules
(different state has different numbers). It is en cashed @ present basic salary.
for every 20 work days 1 EL is earned. And it is applicable to avail in the same in next calendar year or after 240 days in the same calendar year. It is accumulated up to 30 or more depending upon state rules
(different state has different numbers). It is en cashed @ present basic salary.
There is not such a universal rule. Normally if someone is getting his/her EL cncashed, it is calculated on basic salary. i.e. Basic salary/26*multiplied by no. of ELs.
Hi there,
I am sharing you details as per current practice in my company.
Calculation of EL on the basis on the salary eligible for the EL (Basic+ DA+ HRA)
salary eligible for the EL (Basic+ DA+ HRA) / 26 * no. of EL payable.
Hope this will help you......!!
Regards,
Prem Soni
From India, Alwar
I am sharing you details as per current practice in my company.
Calculation of EL on the basis on the salary eligible for the EL (Basic+ DA+ HRA)
salary eligible for the EL (Basic+ DA+ HRA) / 26 * no. of EL payable.
Hope this will help you......!!
Regards,
Prem Soni
From India, Alwar
Dear Soni
U r lucky that ur company has practice to add HRA in salary for EL calculation. Otherwise, for EL calculation salary is meant by Basic Salary + DA.
And thus the calculation should be:(Basic+DA/26*No.of EL).
Pramod Mishra
U r lucky that ur company has practice to add HRA in salary for EL calculation. Otherwise, for EL calculation salary is meant by Basic Salary + DA.
And thus the calculation should be:(Basic+DA/26*No.of EL).
Pramod Mishra
HR_Pramod - If a person is in service and avails EL then he gets full/ gross salary similarly for full and final settlement EL should be calculated per Gross/ full salary. The above is per chapter VII of factories act.
The company's policy or procedure or past practice does not have legitimacy over factories act.
Are you aware of any clause or court's judgement to support payment of only the basic salary in lieu of earned leave? Request to share.
Regards
Navin
From India, undefined
The company's policy or procedure or past practice does not have legitimacy over factories act.
Are you aware of any clause or court's judgement to support payment of only the basic salary in lieu of earned leave? Request to share.
Regards
Navin
From India, undefined
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x