Paid leave encashment
Rajan S
(Querist) 04 April 2012
This query is : Resolved
Dear Learned Professionals,
I need clarification on paid leave salary. for a person employed in a factory which comes under factories act, at the time of separation from factory, his/her paid leave balance say 15 days, shall be settled in gross salary or basic salary. if the salary components is like this
Basic 3000, DA 2000, HRA 4000, Conveyance 1000. please clarify on this.
Rajan S
(Querist) 05 April 2012
Dear Mr. Raj Kumar,
Could you please clarify my doubt. People in my factory claims that as per factories act the leave wages shall be settled in gross salary. How do we convince them, is there any legal support that it shall be done on Basic&DA alone.
V R SHROFF
(Expert) 05 April 2012
All allowances are exclude , except DA.
So Ans is Basic + DA
V R SHROFF
(Expert) 06 April 2012
ALL THAT IS CALCULATED FOR EXTRA/ OVERTIME FACTOR/ GRATUITY PURPOSE/ PF CALCULATION
ARE CONSIDERED FOR LEAVE ENCASHMENT.
IT IS BASIC +DA. 5000/- FOR WORKING DAYS?? 22/ 26 DAYS ??
[ HOW CAN U GET EXTRA HRA?? ],
PARTLY TAX FREE.
