Method for encashment of annual leaves, Corporate Laws / SEBI / LLP

[S.C. WADHWA]

Dear expert,

Please advise us the right method of encashment of accommulated leaves to be paid to an out going employee. On which salary leaves are to be paid. Please also quote if there is any case law regarding encashment of leaves.

Regards,

WADHWA

 

 

Posts / Replies

[SHIVKUMAR SHARMA]

Dear Mr.Wadhwa

Leave encashment can be Calculated as under:

BASIC SALARY + DA x 12(NUMBER OF MONTH OF  IN THE YEAR) x NUMBER OF DAYS OF LEAVE TO BE ENCASH

---------------------------------------------------------------------

           365( NUMBER OF DAYS OF THE YEAR)