Method for encashment of annual leaves

[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

 

 

AI Summary

Guide to Calculating Leave Encashment: Formula Involving Basic Salary, Dearness Allowance, and Accumulated Leave Days An individual inquired about the correct method for calculating the encashment of accumulated leaves for a departing employee, specifically regarding the applicable salary and any relevant case law. The response provided a formula for calculating leave encashment: (Basic Salary + Dearness Allowance) multiplied by 12 (months in a year) and then by the number of leave days to be encashed, divided by 365 (days in a year).