Earn leave encashment ( gross pay or basic pay ) )
ramasamy
(Querist) 17 July 2013
This query is : Resolved
Can any one please clarify whether Earn leave should be encashed on Gross pay - OT and bonus if any or only on basic pay + DA?
Most of the private company leave policy says that earn leave should be encashed only on basic pay. Is it correct as per shops and establishment act or factories act?
Is there any case law which says that earn leave should be encashed on Gross pay?
Rajendra K Goyal
(Expert) 17 July 2013
Various concerns adopt different methods. Some calculate gross pay (Excluding OT and Bonus etc.)while others calculate it only on basic pay.
Raj Kumar Makkad
(Expert) 17 July 2013
Shops and Commercial Establishment Act do not contain such method and even Factories Act do not contain such procedure.
In private sector, the agreed terms and conditions or Standing orders of the employer do play the sole role to get the benefit.
