Due to cost-saving purpose, an employer has decided not to give leave encashment from the next year and they circulated a revised policy.
Now if someone joins or during salary revision time of old employees, will this leave encashment amount should not reflect on salary structure?
Earlier employees's CTC was gross -pf-pt -rsi+ employer deduction (company pf, esi+bonus+gratuity, leave encashment).
Please suggest. If we remove leave encashment for employees existing CTC will be less than earlier. What to do?
One of the consultants suggested that they keep leave encashment as usual as we are giving leaves to employees.
From India, Mumbai
Now if someone joins or during salary revision time of old employees, will this leave encashment amount should not reflect on salary structure?
Earlier employees's CTC was gross -pf-pt -rsi+ employer deduction (company pf, esi+bonus+gratuity, leave encashment).
Please suggest. If we remove leave encashment for employees existing CTC will be less than earlier. What to do?
One of the consultants suggested that they keep leave encashment as usual as we are giving leaves to employees.
From India, Mumbai
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
EPFO Circular Leave Encashment.jpg