RATE OF LEAVE ENCASHEMENT

Leave encashment is to be calculated on Basic +DA

Vishnu P. Srivastava Advocate

The amount of leave encashment payable is worked out in the following manner.

Emoluments (Pay +DA+DP) x No. of days of EL credit subject to max. 300 days

                          30

it depend whether you are industrial worker or government employee for industrial worker it is Basic plus D.A max. upto 45 days for government employee depending upon the service rules of employees prevailing in the state.

Dear Sir,

What is the rate of encashement in case of industrial employees.

Thanks & Regards,

Avinash

Basic plus D.A. plus V.D.A.

Dear All,

No act precribes for a strict guidelines regarding the basis of EL calculation in private sector.

The prevailing and most acceptable formula for EL encashment is calculated on Basic +DA but there is no such act or law which gives details of such calculation. It varies from orgaonization to organization and as per the service agreement.

In my organization we encash EL on gross salary and not on basic +DA.

Hope you all will agree with my views.

regards,

Kamal Prasoon