# Leave Enchashment

**URL:** <https://community.greythr.com/t/leave-enchashment/5455>\
**Category:** Ask the Community\
**Tags:** leave-policy, salary-components\
**Created:** [June 29, 2022, 11:12am UTC](https://community.greythr.com/t/leave-enchashment/5455 "2022-06-29T11:12:08Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![Ritika1](https://avatars.discourse-cdn.com/v4/letter/r/db5fbb/32.png) [@Ritika1](https://community.greythr.com/u/Ritika1)\
**Post date:** [June 29, 2022, 11:12am UTC](https://community.greythr.com/t/leave-enchashment/5455/1 "2022-06-29T11:12:08Z")

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Some companies pay leave encashment on basic and some on gross salary. What is the correct method under factories act, payment of wages act etc.

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**Author:** ![ReetaReeta](https://avatars.discourse-cdn.com/v4/letter/r/50afbb/32.png) [@ReetaReeta](https://community.greythr.com/u/ReetaReeta)\
**Post date:** [June 29, 2022, 12:31pm UTC](https://community.greythr.com/t/leave-enchashment/5455/2 "2022-06-29T12:31:57Z")

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As per labour law, leave encashment should be calculated on Basic only.  
But if there is no CTC breakup in company then it will be calculated on Gross only.