This discussion clarifies whether Variable Dearness Allowance (VDA) is considered when calculating leave encashment. The consensus is that VDA, along with basic salary and fixed dearness allowance (FDA), should be included in the calculation for leave encashment. This total is then used to determine the 10-month average salary for exemption purposes.
26 July 2024
Hi, Is variable dearness allowance part of calculating leave encashment? Same should consider while calculating exemption ( avg salary of 10 months) ? Please guide in detail..