Dear Friends,
Greetings To you all,
I would need some clarity on below formula.
If Leave Encashment is done on as below.
BASIC + DA / Present Month ( 30 / 31 ) * No of EL = Payable
I.e If
Basic - 5000
DA - 2000
Month Days - 30
Balance EL - 20
Then
5000+2000/30*20 = 4666.66 ( Round Off - 4667 ) is payable.
Is this is correct pls comment for any correction with valid reference on provision or rules mentioned in any books.
Thanks
Warm Regards,
Chandra Dev
Head HR
From India, Bengaluru
Greetings To you all,
I would need some clarity on below formula.
If Leave Encashment is done on as below.
BASIC + DA / Present Month ( 30 / 31 ) * No of EL = Payable
I.e If
Basic - 5000
DA - 2000
Month Days - 30
Balance EL - 20
Then
5000+2000/30*20 = 4666.66 ( Round Off - 4667 ) is payable.
Is this is correct pls comment for any correction with valid reference on provision or rules mentioned in any books.
Thanks
Warm Regards,
Chandra Dev
Head HR
From India, Bengaluru
Legally there is no such term as Leave Encashment, it is payment of leave wages. This happens at end of employee service. But some companies pay-off leave wages annually. In leave wages all allowances are to be covered besides basic & DA.
From India, Mumbai
263From India, Mumbai
If you are in Factory refer sec 79 of Factories Act. If you are in commercial establishments refer your states Commercial establishments Act.
From India, Thiruvananthapuram
From India, Thiruvananthapuram
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PF Deduction_Leave Encashment.doc