Dear All,
Please tell me how to encash the leave of the employees:
Currently we are encashing the balance leave at the end of the financial year on the basis of Basic Salary. But we have received some queries from the employees that the leave encashment should be on the basis of Gross salary.
Kindly advice in your company on what basis you are providing leave encashment facility to the employees.
Thanks & Regards,
Supriya
From India, Mumbai
Please tell me how to encash the leave of the employees:
Currently we are encashing the balance leave at the end of the financial year on the basis of Basic Salary. But we have received some queries from the employees that the leave encashment should be on the basis of Gross salary.
Kindly advice in your company on what basis you are providing leave encashment facility to the employees.
Thanks & Regards,
Supriya
From India, Mumbai
An employee is paid all the salary (Basic pay) and all other emoluments e.g. DA, HRA, etc. forming part of Gross salary during the period he proceeds on leave and during the leave period, employee remain getting full salary. On the same analogy when he gets his leave encashed he should be paid the gross emoluments to which he is entitled. Basic is Pay only and not salary as such the gross salary should be paid for leave encashment and not thee basic pay only.
To sum up, the employee should get, the same amount for leave encashment as he would have got if he proceeds on leave/avails his leave.
TR Chhabria
From India, Gurgaon
9To sum up, the employee should get, the same amount for leave encashment as he would have got if he proceeds on leave/avails his leave.
TR Chhabria
From India, Gurgaon
Its a simple calculation (Basic + DA)/30 x no of leaves balance = encashment amount.
But just check that your leave calender is same as financial calender otherwise you can encash in January salary subject to Income Tax calculations.
Regards,
Nikhil
Pune
From India, Pune
But just check that your leave calender is same as financial calender otherwise you can encash in January salary subject to Income Tax calculations.
Regards,
Nikhil
Pune
From India, Pune
Dear KVR,
For any statutory (Except ESIC) & legal calculations like bonus etc. Basic + DA is used, to avoid confusion nowadays Basic comprises of Basic + DA,
Well for HR placement calender year is more suggested than fiscal because it is easier to maintain records but if you are maintaining Leave Register you have to show records for Privilege Leave carry-forwarded or encashed make it sure they are not lapsed, Casual u can encash as per Management Decision, also it is suggested if you encashing the leaves you can pay with the salary of January of every year.
Regards,
Nikhil
From India, Pune
For any statutory (Except ESIC) & legal calculations like bonus etc. Basic + DA is used, to avoid confusion nowadays Basic comprises of Basic + DA,
Well for HR placement calender year is more suggested than fiscal because it is easier to maintain records but if you are maintaining Leave Register you have to show records for Privilege Leave carry-forwarded or encashed make it sure they are not lapsed, Casual u can encash as per Management Decision, also it is suggested if you encashing the leaves you can pay with the salary of January of every year.
Regards,
Nikhil
From India, Pune
Dear friend,
Leave encashment normally falls on the company policy there is no law regarding leave encashment while in service.But your query is very good and one must get the normal wages against the leave encashment which he could have get at the time of on leave.
Hence for information
MN Wakodkar
9766422771
From India, Pune
Leave encashment normally falls on the company policy there is no law regarding leave encashment while in service.But your query is very good and one must get the normal wages against the leave encashment which he could have get at the time of on leave.
Hence for information
MN Wakodkar
9766422771
From India, Pune
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
SC -PF judgment on No PF on Leave encashment.doc
EPFO Circular Leave Encashment.jpg