Earned leaves

ravik (Querist) 15 February 2008 This query is : Resolved
Hi members,

Please give me the information whether, EL encashment is done on the basis of gross salary/Basic Salary?
If possible, please give the law relating to this.

And also let me know whether an organization can limit the number of El's an employee can have?

Regards,
Ravi.

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Prakash Yedhula (Expert) 15 February 2008
It all depends on the leave policy of the particular company. Normally, earned leave will be calculated on basic salary only. Formula to calculate EL is Total Basic Salary divided by Total Number of Months he worked multiplied by number of earned leaves divided by thirty days.