Dear Seniors, Greetings! The calculation of Leave Without Pay, if, done on The Basic or Gross salary. You are kindly requested to give your expert opinion. Thanks Regards Hema
From India, Nagpur
3From India, Nagpur
For calculation of Loss of Day all components should be taken means gross salary. For Loss of Hrs only Basic,DA and Spl Allowance should be taken
From India
From India
Hi,
1. If an employee is taking leave without pay : The amount dedcuted will be same as amount paid whle leave taken with pay. It is Gross Pay what companies take.
2. If an employee go for encashment of leave: This is followed as per letter of appointment / rules of company. Generally companies consider Basic pay in case of encashment of leave, which is unfair but is a fact.
Trust the above information is useful.
Regards,
Niraj
From India, Coimbatore
1. If an employee is taking leave without pay : The amount dedcuted will be same as amount paid whle leave taken with pay. It is Gross Pay what companies take.
2. If an employee go for encashment of leave: This is followed as per letter of appointment / rules of company. Generally companies consider Basic pay in case of encashment of leave, which is unfair but is a fact.
Trust the above information is useful.
Regards,
Niraj
From India, Coimbatore
Dear All, Is there any provisions which may prohibit companies to encash leaves on Gross Salary instead to Basic Salary.
From India, Gurgaon
From India, Gurgaon
If you leave Incentive & Sp. Bonus in LOP calculation then employee who takes full month LOP will get the incentive. Actually he should not get any salary. His salary should be 0. In that case Incentive also should be included in the LOP calculation
From India, Madras
From India, Madras
Hi Hema,
I will explain you with example.
The gross ( BASIC+ HRA+ CONV+ Spcl Allow+.....) = 20000 p.m
Per day it is 666.66/-
if the employee has worked for 29 days then I will pay him 666.66*29 =19333.33/-
Hence, its on gross & not on basic, coz when taken on gross your basic , pf , is attracted automatically.PT will not be affected.
I hope i have tried to make it simple & clear.
Regards
Gaurav Vedak
9821880012
From India, Bangalore
I will explain you with example.
The gross ( BASIC+ HRA+ CONV+ Spcl Allow+.....) = 20000 p.m
Per day it is 666.66/-
if the employee has worked for 29 days then I will pay him 666.66*29 =19333.33/-
Hence, its on gross & not on basic, coz when taken on gross your basic , pf , is attracted automatically.PT will not be affected.
I hope i have tried to make it simple & clear.
Regards
Gaurav Vedak
9821880012
From India, Bangalore
If an employee has been on Leave Without Pay, then the total number of days taken into consideration for computing his salary for the month will be less that many no. of days of LWP.
Example:
Total days in the month :31 days
Weekly Off Days : 5 days
Holidays ; 1 day
Days Present : 20 days
LWP : 5 days
Salary for him will be made for only 26 days.
Best Wishes,
Vasant Nair
From India, Mumbai
Example:
Total days in the month :31 days
Weekly Off Days : 5 days
Holidays ; 1 day
Days Present : 20 days
LWP : 5 days
Salary for him will be made for only 26 days.
Best Wishes,
Vasant Nair
From India, Mumbai
Hi Hema :
LWP or LOP is usually on the gross salary.
Some org such as ours, considering as a welfare measure, do have a leverage on this wherein for LOP within 5 days, the Basic and DA is only deducted and other components such as HRA, conv etc are not deducted.
Good Luck !!!
:::Dhinakaran
From India, Hyderabad
LWP or LOP is usually on the gross salary.
Some org such as ours, considering as a welfare measure, do have a leverage on this wherein for LOP within 5 days, the Basic and DA is only deducted and other components such as HRA, conv etc are not deducted.
Good Luck !!!
:::Dhinakaran
From India, Hyderabad
Calculation of leave without pay will be calculated on gross salary for e,g :
Gross Salary : 8000/-
Days in a month : 30
Working Days in a month : 26
So Gross Salary would be : 8000/30*26 = 6933.33 or 6934/-
Now Salary Break-up will be calculated on gross salary of 6934/- for the respective month .
Regards
Moninder
M : 9717388549
From India, New Delhi
Gross Salary : 8000/-
Days in a month : 30
Working Days in a month : 26
So Gross Salary would be : 8000/30*26 = 6933.33 or 6934/-
Now Salary Break-up will be calculated on gross salary of 6934/- for the respective month .
Regards
Moninder
M : 9717388549
From India, New Delhi
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x