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Hi, different companies calculate it in different way. most used ways are as follows:- 1) 1 day basic salary X no. of ELs 2) (1 day basic salary + 1 day TA + 1 day DA) X no. of ELs
From India, Delhi
From India, Delhi
Why do you need to calculate encasement of earned leave? Are you a HR professional or management student?
Generally it depends on the company policy like in some company it is enchased on basic and dearness allowances only and in some it is enchased on gross salary.
I my previous company if you have 30 days leaves you will be paid for 34 days (26 days equal to 1 month plus 4 days)
I believe this clarifies your query.
From India, Bhubaneswar
Generally it depends on the company policy like in some company it is enchased on basic and dearness allowances only and in some it is enchased on gross salary.
I my previous company if you have 30 days leaves you will be paid for 34 days (26 days equal to 1 month plus 4 days)
I believe this clarifies your query.
From India, Bhubaneswar
Hi, Leave encashment calculation differs for each company: Calculation: (Basic Salary + DA)/30*Earned leave
From India, Chennai
From India, Chennai
Dear, The earned leave encashment caliculation formula as per factories act Basic+DA*No.of eligible ELs/26
From India, Secunderabad
From India, Secunderabad
Hello,
As per the Factories Act, it is :
(Basic+DA) / 26 * No of Encashment Days.
But this is flouted by most companies for their benefit as they calibrate the rule as under
(Basic+DA) / 30 * No of Encashment Days.
Trust this is fine.
Warm Regards,
SR Banaji
Resolve Business Solutions
From India, Bangalore
As per the Factories Act, it is :
(Basic+DA) / 26 * No of Encashment Days.
But this is flouted by most companies for their benefit as they calibrate the rule as under
(Basic+DA) / 30 * No of Encashment Days.
Trust this is fine.
Warm Regards,
SR Banaji
Resolve Business Solutions
From India, Bangalore
Companies have their own policies for leave encasahment as some of company even do not allow for leave encashment. So even if you an HR then better you decide yourself how it will be good to calculate.
If you want to know examples for calculation then some companies encash pending leaves by paying the 50% comparing to a working day salary as well as few companies encash leaves only if the 50 % of allowed leaves are pending.
From India, Lucknow
If you want to know examples for calculation then some companies encash pending leaves by paying the 50% comparing to a working day salary as well as few companies encash leaves only if the 50 % of allowed leaves are pending.
From India, Lucknow
Leave encashment should be done on gross salary instead of basic salary, calculation formula should be Gross Salary/26 * no. of leave/leaves. Thanks & Regards, From, Sumit Kumar Saxena
From India, Ghaziabad
From India, Ghaziabad
In calculation for Leave Encashment (Gross/26*no. of leave) what does 26 mean? Thank You
From India, undefined
From India, undefined
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x