Leave encashment policy

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Leave encashment policy

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Ranjith

2 Posts

Posted 19-02-2010Reply

Hi professionals

I am looking for a leave enchasment policy for the corporate industry,if you have information regarding this post ,pls share with me,it would really helpfull for me

Regards

Ranjith

Kiran Kumar

3 Posts

Rated 0 | Posted 20-02-2010

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Leave encashment policy varies from Organization to Organization.

In some organization they calculate for 30 days and in some it is for 26 days.

Formula = Basic * No. of EL's to be Encashed/ 30 days

Ajay

1 Posts

Rated 0 | Posted 20-02-2010

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Hi,

The Best Formula for Leave encashment is (Basic/26*No.of Enchashment days)

it is the best formula as well as Incometax Act.

Kartheka

293 Posts

Rated 0 | Posted 20-02-2010

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Hi

In our concern Leave encashment is calculated on the basic + DA ( (Basic+DA/26)* no of days). Also it comes under the taxable income to the employee.

Also you can check the earlier discussion we had on this topic in this link
http://hrlink.in/topics/earn-leaves

Rgds

Kartheka R

Vaeshalli