I thought the calculation is ;
See the example;
if 3 year empl. contract.
joining date - 07/10/2005
Last working day - 07/10/2008
Calculation : Total No. of Days x Per month days / Per year days
i.e. 1096 days x 30 / 365
Leave Availed - 90 days
Leave salary will calculate : 90 days x Current per day salary
(last month drawn slary basis including all allowance)
Current Salary / Per month days
i.e. Current salary will be AED.5000/- (including allowance all)
AED.5,000.00 / 30 days = 166.66 per month provision
Dear all, the above any mistake or wrong calculation, please let me know the correct calculation.
EL Days calculation
As per Factories Act
one Day EL will be accumulated for every 20 days physical worked days(Minimum attendance is 240 Days)
As per Shops & Eastalishment Act.
15 days EL will be accumulated to employees Leave account(Minimum attendance is 240 Days)
EL will be paid by Basic + DA
One Day wage will be calculated as under
Monthly salary / 26 Days
As per the Shops & Establishment Act on completion of 1 year of service from the date of joining an employee is entitled for min 15 days earned leave. However on completion of 240 days of physical service proportionate number of days of leave can be availed by the individual. The accumulation of earned leave is permitted to the extent of 60days thereafter the leave gets lapsed or paid as per the policy of the organisation.
The calculation is given below:
If the leave accumulated is 60 days and the gross salary is 10000. Then EL = 10000 /30*60
I hope this is clear
here how to calculation of earned leaves =
every 24 days eligible for 1 day el
so 24*15= 360 days. ( average month 30 days * 12 months)
suppose one year completing means 15 els eligible. in case after one year employee resign means
i.e = gross salary = 5000
calculation of el's amount = 5000/30
no. of el's = 167* 15 (one year el's)
= 2505 * 85%
As per factories act for every physical 20 working days one day leave eligible, this leave can be accumulated to maximum of 30 days (ie upto two years) more than that will be lapsed or encashed it depends up on the company policy.
Encashment of leave is only on Basic & D.A as per Act, if organisation willing to encash on whole salary including allowances then it is fine (up to the policy of company)
So if a person works throught out the year without absent then he will earn 15 or 16 days leave maximum.
One day salary of employee in shoe induster is as follows
Basic: 70.00 Rs
D.A : 18.56 Rs
Allow: 6.50 Rs
Total : 95.06 Rs
One day leave encashment is 88.56 (Basic & D.A only)
For this no need to deduct PF & ESI contribution
There is a conflict whether to deduct PF contribution or not. but as per madurai High Court order - No need to deduct PF contribution
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