1. #1
    Unregistered

    What is the procedure of encashment of earned leave?

    I want to know about the components of the salary which are considered for encashment of Earned Leave and is it true that gross salary or CTC is considered to calculate the LOP of the employee?

  2. #2
    SKS Array
    Join Date
    Sep 2012
    Posts
    331

    Re: What is the procedure of encashment of earned leave?

    If Earned leave (EL) is encashed in any company at the end of the year, that that is encashed by dividing the mothly basic salary by 30 days.
    So, if for example your basic salary is 9000 per month, than your one EL will get you rs 300.
    EL is never encashed on the bais of Gross Salary or the CTC.
    It is always done as per the Basic Salary only.
    But still i would suggest that you should check this with your HR team

  3. #3
    Ashok Array
    Join Date
    Jul 2012
    Posts
    2,293

    Re: What is the procedure of encashment of earned leave?

    Quote Originally Posted by Unregistered View Post
    I want to know about the components of the salary which are considered for encashment of Earned Leave and is it true that gross salary or CTC is considered to calculate the LOP of the employee?
    Dear Aspirant,

    In general an employee in the pvt.sector is entitle to encash their 15 days privilage/Earn leave in a year.

    The basic salary & dearness allowances are taken in to accounts for calculating the amount.

    The sum of these two components are added & then divided by 30 in order to get the amount of one day which is multiplied by the nos of days encashed.

    Suppose your basic is 10,000 & dearness allowances is 5000,then sum is 15000/30=Rs500*15 =Rs7500/is the amount of encashment for 15 days.

    Thanks & good luck.

    Ashok




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