Hi, Is encashment of unavailed PL compulsory?.If yes, what salary components are considered to calculate the due encashment? We have 21 days as EL in a year(April-March) Regards, Gauri
From India, Pune
From India, Pune
hi gauri,
encashment is only after the retairment/resignation/termination of emplyee, but it depend upon the organisation, where they accumulate or lapes or encash every year,
the encashment calculation is basic+da+vda/26*no of pl balance,
any quiry let me know on my email id
From India, Delhi
27encashment is only after the retairment/resignation/termination of emplyee, but it depend upon the organisation, where they accumulate or lapes or encash every year,
the encashment calculation is basic+da+vda/26*no of pl balance,
any quiry let me know on my email id
From India, Delhi
hi Gauri
The unavailed PL has to be encashed at the time the employee is leaving the service or if the employee dies during service. the encashment of PL every year is not compulsory. the employer may draft a scheme For the purpose of ensuring the continuity of work and for securing the attendance of the workers and the management may encash the unavailed earned leave at the end of every calendar year.
Following shall be the salary components while calculating the encashment of leaves:-
Sec. 80. Wages during leave period.- (1) For the leave allowed to him under section 78 or section 79, as the case may be, a worker shall be entitled to wages] at a rate equal to the daily average of his total full time earnings for the days on which he actually worked during the month immediately proceeding his leave, exclusive of any overtime and bonus but inclusive of dearness allowance and the cash equivalent of the advantage accruing through the concessional sale to the worker of foodgrains and other articles:
Provided that in the case of a worker who has not worked on any day during the calendar month immediately preceding his leave, he shall be paid at a rate equal to the daily average of his total full time earnings for the days on which he actually worked during the last calendar month proceeding his leave, in which he actually worked, exclusive of any overtime and bonus but inclusive of dearness allowance and the cash equivalent of the advantage accruing through the concessional sale to the workers of foodgrains and other articles.
(2) The cash equivalent of the advantage accruing through the concessional sale to the worker of foodgrains and other articles shall be computed as often as may be prescribed on the basis of the maximum quantity of foodgrains and other articles admissible to a standard family.
Explanation 1.- `Standard family' means a family consisting of worker, his or her spouse and two children below the age of fourteen years requiring in all three adult consumption units.
Explanation 2.-`Adult consumption unit' means the consumption unit of a male above the age of fourteen years and the consumption unit of a female above the age of fourteen years and that of a child below the age of fourteen years shall be calculated at the rates of 0.8 and 0.6 respectively of one adult, consumption unit.
bye
From India, Ludhiana
The unavailed PL has to be encashed at the time the employee is leaving the service or if the employee dies during service. the encashment of PL every year is not compulsory. the employer may draft a scheme For the purpose of ensuring the continuity of work and for securing the attendance of the workers and the management may encash the unavailed earned leave at the end of every calendar year.
Following shall be the salary components while calculating the encashment of leaves:-
Sec. 80. Wages during leave period.- (1) For the leave allowed to him under section 78 or section 79, as the case may be, a worker shall be entitled to wages] at a rate equal to the daily average of his total full time earnings for the days on which he actually worked during the month immediately proceeding his leave, exclusive of any overtime and bonus but inclusive of dearness allowance and the cash equivalent of the advantage accruing through the concessional sale to the worker of foodgrains and other articles:
Provided that in the case of a worker who has not worked on any day during the calendar month immediately preceding his leave, he shall be paid at a rate equal to the daily average of his total full time earnings for the days on which he actually worked during the last calendar month proceeding his leave, in which he actually worked, exclusive of any overtime and bonus but inclusive of dearness allowance and the cash equivalent of the advantage accruing through the concessional sale to the workers of foodgrains and other articles.
(2) The cash equivalent of the advantage accruing through the concessional sale to the worker of foodgrains and other articles shall be computed as often as may be prescribed on the basis of the maximum quantity of foodgrains and other articles admissible to a standard family.
Explanation 1.- `Standard family' means a family consisting of worker, his or her spouse and two children below the age of fourteen years requiring in all three adult consumption units.
Explanation 2.-`Adult consumption unit' means the consumption unit of a male above the age of fourteen years and the consumption unit of a female above the age of fourteen years and that of a child below the age of fourteen years shall be calculated at the rates of 0.8 and 0.6 respectively of one adult, consumption unit.
bye
From India, Ludhiana
Dear Gauri Kulkarni,
Is encashment of unavailed PL compulsory?. - Yes at the time of sepration.
If yes, what salary components are considered to calculate the due encashment? - Fixed Salary
Hope this will meet your requirement
Regards
Pankaj Chandan
From India, New delhi
Is encashment of unavailed PL compulsory?. - Yes at the time of sepration.
If yes, what salary components are considered to calculate the due encashment? - Fixed Salary
Hope this will meet your requirement
Regards
Pankaj Chandan
From India, New delhi
hi..
As i know deducting PF from the leave encashment was practiced. but then I remember in an order superme court has cancelled the practice (correct me seniors if i am wrong).
even at present i am not deducting any PF amount from the leave ecashment and calculating amount depends whether you are paying/fixing salary monthly or daily basis.
if you are fixing monthly salary then calculate it by 30 and daily wages then calculate with 26.
This is what i know about leave encashment plz correct if am worng.
regards
Madhu
From India, Bangalore
As i know deducting PF from the leave encashment was practiced. but then I remember in an order superme court has cancelled the practice (correct me seniors if i am wrong).
even at present i am not deducting any PF amount from the leave ecashment and calculating amount depends whether you are paying/fixing salary monthly or daily basis.
if you are fixing monthly salary then calculate it by 30 and daily wages then calculate with 26.
This is what i know about leave encashment plz correct if am worng.
regards
Madhu
From India, Bangalore
Gauri,
Leave Management is totally at Management Descretion other than few legal things which you have follow which is the minimum statutory requirement.
21 PL are compulsory (any Factory or establishment) you can encash or make it compulsory to avail it (else it will lapse)
Here, again legally, Basic & DA components are required to be considered.
Regards,
Sandeep Kulkarni
From India, Vadodara
Leave Management is totally at Management Descretion other than few legal things which you have follow which is the minimum statutory requirement.
21 PL are compulsory (any Factory or establishment) you can encash or make it compulsory to avail it (else it will lapse)
Here, again legally, Basic & DA components are required to be considered.
Regards,
Sandeep Kulkarni
From India, Vadodara
Dear Anil, It is not nessesary to deduct PF from Leave Enchament. As rightly said by madhu for salaried employees it is 30 days and for daily wage earner it will be 26 days. Sandeep Kulkarni
From India, Vadodara
From India, Vadodara
Dear Manoj,
Any employee who has worked for 4 years and 240 days is eligible for gratuity under the Payment of Gratuity Act.
Gratuity is payable on basic wages including dearness Alowance.
Amt of Gratuity Payable= Basic Wages/26*16*no of years actually worked.
This gratuity amount must be paid to the leaving/retiring employee within 21 days of his date of leaving the organiosation.
Thanks
Amit Anand Gera
From India, New Delhi
Any employee who has worked for 4 years and 240 days is eligible for gratuity under the Payment of Gratuity Act.
Gratuity is payable on basic wages including dearness Alowance.
Amt of Gratuity Payable= Basic Wages/26*16*no of years actually worked.
This gratuity amount must be paid to the leaving/retiring employee within 21 days of his date of leaving the organiosation.
Thanks
Amit Anand Gera
From India, New Delhi
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PF Deduction_Leave Encashment.doc
PF Contribution on Leave Encashment - Clarification by EPFO.pdf