savita jha Started The Discussion:
Dear all Can any one help me in calculating the earn leave. and also advise me what is the provision for the same. Thanks Savita
Posted 21st July 2008 From India , New Delhi
rsnair 
I thought the calculation is ;
See the example;

Leave
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)

PROVISION :
Current Salary / Per month days
i.e. Current salary will be AED.5000/- (including allowance all)

So,
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.

Regards
Posted 24th July 2008 From United Arab Emirates , Dubai
Mr.R.S.Nair well Annual leave with wages sec 79 factories act says that one day leave with wages to be given for every 20 days of work could u tell me which is correct. cm
Posted 26th July 2008 From India , Coimbatore
rsnair 
Mr.C.Mohan,

Normally the annual leave and wages calculated as per labour law;
Annual leave : Per year 21 day
And Lsalary : Per year 30 days wages

I donít know, if any difference between factory act and labour law.
Posted 27th July 2008 From United Arab Emirates , Dubai
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
Posted 28th July 2008 From India , Pune
Hi Savitha,

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

Kavitha Jagathkar


Posted 29th July 2008 From India , Hyderabad
I think kavitha has given good explanation for EL . This applicable for all major private sectors in india . Thanks a lot kavita
Posted 31st July 2008 From India , Hyderabad
Hi All, Anybody Knows How To Calculate The Maternity Leave Encashment? Whats`s The Formula?
Posted 31st July 2008 From India , Delhi
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
= 167
no. of el's = 167* 15 (one year el's)
= 2505 * 85%
= 2129.
Posted 1st August 2008 From India , Bhilai
Hi,

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.

Encashment :

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

regards

Satheesh
Posted 5th August 2008 From India , Madras
As per the Indian companies act as amended, I want to know that whether HRA should be shown separately in sub-schedule (included in salaries & wages head in P&L account) or it can be eliminated from sub-schedule and straightaway included in salaries and wages head only (not showing the breakup in subschedule seperately). Would be please clarify on this.
Posted 21st August 2008 From India , Bangalore
As per my best knowldge,

PL : As per factory Act
for worker - 1 PL / 20 days present for those who has completed 240 days during calander year, for new join employee average 20 days present must per month.

calculation is : Balance PL* (basic+DA)/(30/26 as per organisations rule) for monthly salary earner
Balance PL * Daily wages (Basic+Special Allow.)

CL : Casual leave is given to only staff and higher cadre
7 CL per annuam, which may be lapse after completion of calander year.

SL : SL is given to those, who are not covered under ESI,
7 SL per annuam, which may be carry forward max 45 leaves completion of calander year.
Posted 7th September 2008 From India , Ahmadabad
in our company we are giving different EL i.e. 18 to worker, 22 to staff/supervisor and 30 to managers. is it correct according to law
Posted 12th September 2008 From India , Patiala
Hi Gita,
The maternity leave can never be encashed it can only be availed the Maximum period is 12weeks only, but in critcal circumstances it can be extends for 1 month more.

Thanks

The earned leave is calculated on BASIC+DA and the month days will be taken as 26 only.

therefore the calculation will be as follows:

Total EL Balance*(BASIC+DA)/26.

You can avail the tax exemption on EL Balance but it is for 30days per year subject to maximum of Rs. 300000/-. only

Rahul Bhardwaj
Posted 17th September 2008 From India , Delhi
Viji77 
Hi Naiha Is 85% standard for EL calculation? Could you pls send me excel sheet to maintain stationery stock. I wish to know how to maintain stationery stock and its usuage by the staff Regards Viji
Posted 24th September 2008 From India , Madras
I think preparation of EL account needs to be simplified a little bit. Work from Jan-Dec then get EL @ 1 day per every 20 days U have actually worked subject to minimum 240 days of actual work in a Calendar year. If you take into account the Holiday roaster of a Company & Weekly Offs then maximum working day would be something around 300. Divide it by 20 & U get 15 days maximum. Simple.

Then comes if & buts ie if somebody has taken leave for a prolonged period & his/her actual attendance at work place fells short of 240 days benchmark then take into account the authorised period of leave for reaching the 240 days milestone. But, leave will only be calculated on the days he/she has actually worked even if it may be less than 240 days for the year.

Suppose, somebody joins in between a Calender Year, then check whether his /her working attendance is 2/3rd the actual working attendance for the establishment, then you can calculate EL on the above procedure i.e. 1day for every 20 days.

Any comments?
Posted 10th October 2008 From India , Calcutta
ESI is deducted on all monthly earning factors i.e. 1.75% of total salary (employees deduction) ehich is shown in salary register whereby employer have to pay 4.75% on total salary.

As per act any employee getting salary of Rs. 10001/- and above is not covered under esic act.
Posted 11th October 2008 From India , Pune
hi all,

please guide me how to calculate leave which comes 8.33% or 12.36%. as we quote while giving rates to clients in Security Services (Manned Guarding). Please give me complete details how the calculation of 8.33% and 12.36% comes up.
Posted 6th April 2010 From India , Chandigarh
Dear Nair,

I want to know one thing that , in the calculation part you are using the 30 days, is there any provision as per the Factories act(I think these leaves part comes under Factories Act).

As per my knowledge and factories Act, instead of taking 30days we have to take last nonth calender days is the basis for EL calculation.

Please correct me if i am wrong.

On this topic there is case in the high court of Andhra Pradesh.

Regards,
Ramana Murty
HR- MRF Tyres (India)

Leave & provision
I thought the calculation is ;
See the example;

Leave
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)

PROVISION :
Current Salary / Per month days
i.e. Current salary will be AED.5000/- (including allowance all)

So,
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.
Posted 5th June 2010 From India , Mumbai



 
 
 
 







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