Hi Satya,

What you were doing earlier is not clear. Earned Leave @ Gross Salary and Maternity Leave @ Full Salary. First tell whether there is any difference between Gross Salary & Full Salary.

Whatever the case may be, what changes you hace brought is in is not correct as er law.

(i) Leave Encashment : As per Factories Act 1948, an employee (worker) will be entitleld for Leave with wages for each completed 20 days of work. Leave with wages means the Basic Pay and the DA. (Basic pay may included any other component also like Personal Pay,Dearness Pay,Stagnation Pay which are applicable in case of PSUs). So when you are allowing your employees for encashement of Earned Leaves it should be paid on the basis of Basic Pay Plus DA (as he /she would have been paid on normal working day)

(ii) Ragarding Maternity Leave all the benefits for the period of Maternity Leave is to ba paid to employee. It means the leave payment of the basis of Basic Pay + DA and other Payments like HRA and other components which are applicable to your organisation are to be paid in full. You can refer the Employee State Isurance Act,1941 or Maternity Benefits Act, 1961.

If you are not able to get the Bare Act you can refer the google site for the same and can take the print out for putting up the new proposal to your management.

Santosh Gupta