Please tell me whether to calculate leaves encashment on CTCV basis or basic salary.
Actually in our company we have calculated on CTC basis
We have done in this way :
Eg : CTC is Rs. 15000/-
So 15000 PEr day salary is Rs. 500
: 500*no of leaves (EL) (500*11.5 EL=5750)So we have give encashment of Rs. 5750/- to the employee
IS it correct? Please guide
From India, Pune
2Actually in our company we have calculated on CTC basis
We have done in this way :
Eg : CTC is Rs. 15000/-
So 15000 PEr day salary is Rs. 500
: 500*no of leaves (EL) (500*11.5 EL=5750)So we have give encashment of Rs. 5750/- to the employee
IS it correct? Please guide
From India, Pune
Subject - Is leave encashment is calculated on CTC ?
Please tell me whether to calculate leaves encashment on CTC basis or basic salary.
Actually in our company we have calculated on CTC basis
We have done in this way :
Eg : CTC is Rs. 15000/-
So 15000 PEr day salary is Rs. 500
: 500*no of leaves (EL) (500*11.5 EL=5750)So we have given encashment of Rs. 5750/- to the employee
IS it correct? Please guide
From India, Pune
Please tell me whether to calculate leaves encashment on CTC basis or basic salary.
Actually in our company we have calculated on CTC basis
We have done in this way :
Eg : CTC is Rs. 15000/-
So 15000 PEr day salary is Rs. 500
: 500*no of leaves (EL) (500*11.5 EL=5750)So we have given encashment of Rs. 5750/- to the employee
IS it correct? Please guide
From India, Pune
hi Pallavi, If your fixed monthly gross component is Rs. 15000/- then above calcuation in correct.
From India, Pune
From India, Pune
So its in-correct. But we can calculate leave encashment of CTC also. ITs not complusion that we need to do it on Basic salary??
From India, Pune
From India, Pune
Hi
CTC is only for employer reference on how much they are spending for an employee. CTC breakup could have the EL part but not for calculation. EL has to be calculated on the fixed/Gross salary for an worker/workmen and for staff, it depends on the company's policy, it could be gross or only basic.
CTC is only for employer reference on how much they are spending for an employee. CTC breakup could have the EL part but not for calculation. EL has to be calculated on the fixed/Gross salary for an worker/workmen and for staff, it depends on the company's policy, it could be gross or only basic.
Normally, the leave enchasement is done on gross monthly salary only. So your calculation is right.
From India, Pune
From India, Pune
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
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EPFO Circular Leave Encashment.jpg