Calculation of earned leave

This query is : Resolved 
 

(Querist)
08 September 2012

Dear Sir,

The corporate office of our company is registered under Punjab shops and establishment act.

Do we need to pay the earned leave on total salary or only on basic pay since in total pay there is lot of components like conveyance allowance,HRA etc.

Kindly clarify and also inform us about the calculation formula.

Regards,

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Kumar Doab (Expert)
21 March 2013

The Punjab Shops and Commercial Establishments Act, 1958
[PUNJAB ACT NO. 15 OF 1958]
(xxvii) “wages” shall have the meaning assigned to it in the Payment of Wages Act, 1936 (IV of 1936);
14. Leave. -- (a) Every employee who has been in employment for not less than twenty days in a year shall be entitled to one day’s earned leave for every such twenty days
15. Wages for close days and during leave period:
(2) For the leave allowed to him under section 14, an employee shall be paid at the rate of equal to the daily average of his total full time earnings for the days on which he worked during the month immediately preceding 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 employee of food grains and other articles.

raj kumar makkad (Expert)
21 March 2013

Doab! What made you to attend such unattended posts on today when even the authors have no care towards them?

Kumar Doab (Expert)
21 March 2013

Sir,
I Regret. I missed to notice.

raj kumar makkad (Expert)
21 March 2013

You have attended two such posts within 3 minutes.

Kumar Doab (Expert)
21 March 2013

Sir,

Onwards, I shall be careful.



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