Earned Leave Calculation

[exalture]

Hi,

As per my knowledge earned leave I given to employees who have worked for 240 days or more in a calendar year. I also know it is given on a pro data basis if an employee joins the middle during a calendar year. My doubt is these two are contradicting right. A person joining in the middle or later cannot be doing 240 days of service, so how is the calculation done for earned leave?

[Dinesh]

Hi @exalture

Leaves given to employees are calculated on the basis of working days in a month.

Some companies give at the end of the month - some do it in the beginning of the year.

So, if an employee joins on 15th and you have 1-day leave for a month then 0.5 will be given on a pro-rata basis. (same calculation applies for yearly too)

For every 20 days of working 1 day of earned leave is mandatory for an employee - the law only says this and left to be decided as per the company and its policies.

Some companies split this into Sick - Annual - Earned - Casual etc which is as per their best practices and needs to attract and retain talent

We have blog on this: https://blog.greythr.com/leave-types-management-system

S&CE Karnatka: http://www.shram.org/uploadFiles/20131028113226.pdf

[shefalipatil]

Hi Dinesh,

Thanks for sharing the blog link: https://blog.greythr.com/leave-types-management-system

However, the team may need to update this section based on the new amendment which is approved.

5. Maternity Leave/ Paternity Leave - Maternity benefit Act of 1961 requires that employers have to provide 12 weeks paid leave to any woman who has worked for at least 80 days in the 12 months preceding the date of expected delivery. The amendment to this Act (introduced in Rajya Sabha in August 2016, and is yet to be passed to come into effect as on this day) seeks to increase this benefit of 12 weeks to 26 weeks. The sad part for fathers or yet to be fathers is that there are no laws in India providing paternity leaves in India. However, certain employers do provide paternity leaves as an additional benefit.

[Dinesh]

Oops… Thanks @shefalipatil

Will immediately pass this to the team.

[Arpana]

Hi,

As you said after completing 240 days an employee will be eligible for EL which means if any employee joins the organization in the middle of the calendar year then he/she will not be eligible for EL for the present calendar year not even as per the pro rata basis.

However, if company wants to give SL (Sick leave ) they can give.

I hope this information will be helpful for you.

[Arpana]

Hi Shefali,

Yes, its sad that Father or Father to be there is no law for Paternity Leave.

However we give 10 days Paternity leave as an additional benefit for Male employees.

[shefalipatil]

Hi @Arpana,

While calculating the Earned Leaves, are weekly off also calculated as earned leave? For example for someone has taken leave from Friday, 9th October 2020 to Wednesday, 14th October 2020, then will the earned leave be calculated as 6 days or 4 days? Thanks

[Arpana]

Hi Shefali,

It depends on company to company. Like in my company we do not consider weekly offs. In this scenario his earned leaves will be 4 days.

But if a company follow sandwich policy then his earned leave will be 6 days.

Hope this information will be helpful for you.