Payment of leave salary on terminations & resignations

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Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2014 Please give me the working of leave salary payment on termination of job and on resignation.

Basic Salary - Rs.20000/= per month

We agreed to pay 30 days paid leave per year

We pay basic salary + Allowances = total monthly salary.

Please give me the working on both the case - on Termination and Resignation

Amol S Joglekar

Amol S Joglekar (Expert)
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17 November 2014 In both the cases the calculation is same.
Calculate the salary as per the last drawn salary, in the month of termination/resignation.

Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2014 Thanks Mr.Amol. Still i am not clear about leave salary is to be paid on basic salary or with all the allowance.

In other country Leave Salary or Gratuity is paid the Basic Salary without any allowance.

Here we are paying for them Provident Fund also.

Please clarify in detail

Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2014 Basic Salary Rs.20000/= + other allowances Rs.25000/= = Total Rs.45000/=

So leave salary to be paid on Rs.20000/= on basic salary and not on allowance.

+ Accommodation is given by the company + Ele & water bill at actual payment

Amol S Joglekar

Amol S Joglekar (Expert)
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17 November 2014 Unless the terms of employment provide otherwise, the leave salary, termination salary is to be paid JUST LIKE MONTHLY SALARY

Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2014 In the appointment letter Breakdown is given for the salary structure Basic Salary + other allowances..

In the same letter mentioned that 30 days leave salary will be paid on completion of 12 months leave salary

Amol S Joglekar

Amol S Joglekar (Expert)
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18 November 2014 Salary includes allowances, that is what the general interpretation is. "Only basic" is not advisable.

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