Hi
First time we are introducing EL encashment benefit to our employees. I would like know whether EL encashment is calculated on Basic + DA or on Gross salary.
Hi
First time we are introducing EL encashment benefit to our employees. I would like know whether EL encashment is calculated on Basic + DA or on Gross salary.
Ideally, Encashment to be provided on Basic+DA
You can use this formula: Leave Encashment Amount = (Basic + DA)/26 * No of encashment days)
The tax exemption would be minimum of the below 4 points: