EARNED LEAVE CALCULATION
Deepali Balpande
CAN YOU EXPLAIN ME THE PROCEDURE OF EARNED LEAVE CALCULATION IN A PUBLIC LIMITED COMPANY.
THANKS & REGARDS,
DEEPALI
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CS.Omkar
Dear Ms. Deepali,
Earned Leave/Privileged Leave for Management Staff differs from company to
company depending on policy of the company. There is no law which prescribes
minimum number of Earned Leaves for management staff and also what components shall be considered
for its encashment.
However, as per Sec. 78 & Sec. 79of the Factories Act 1948, workers (who will come
under the definition of worker as provided under Sec. 2(l) of the Factories
Act) are eligible for 1 day of Leave with wages for every 20 days worked.
Eligibility Criteria:
• Should work for 240 days in a calendar year – his/her service is from beginning of the calendar year;
• Should work for 2/3rd of days of the calendar year – his/her service begins in
the middle of calendar year.
Unavailed leave is encahable. For encashment of Leave with Wages by worker, his
Basic plus DA plus cash value of concessional food grain or any other article
provided shall be considered.
Let me know if any contrary views.
Regards...Omkar
Raman Rengan
In most of the companies, only the basic is considered for the purpose of calculation of encashment of earned leave. The leave rules also differ though it has to comply with the minimum leave as per the statutory regulations. The reason for considering basic may be on account of the reason that the rest of the components are allowances and this is also line with the calculation of PF and Gratuity.
Thanks and Regards,
R. Raman
From: CS.Omkar <acs....@gmail.com>
To: csmy...@googlegroups.com
Sent: Saturday, 21 February, 2009 11:24:17
Subject: [CSMysore] Re: EARNED LEAVE CALCULATION