Please give Leave encashment formula. Profession Tax & Pf
or any other Dedecution deduct on leave encashment or not.

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Please give Leave encashment formula. Profession Tax & Pf or any other Dedecution deduct on le..

Answer / ashfaque

if company deducting from gross salary due to absent, is
bound to pay leave encashment on gross not on basic salary.

Is This Answer Correct ?    9 Yes 3 No

Please give Leave encashment formula. Profession Tax & Pf or any other Dedecution deduct on le..

Answer / neelam garg

formula: Basic Salary/26(working days consider as per govt)
*no of leaves suppose basic salary 7500 & pending leaces 10
than leaveencashment amount will be : 7500/26*10=2884.61Rs

Is This Answer Correct ?    2 Yes 0 No

Please give Leave encashment formula. Profession Tax & Pf or any other Dedecution deduct on le..

Answer / p. navaneetha krishnan


If an employee having Credit on is Leave (which can be
withdrawn / encashed) that will be paid (only the basic
amount not full day salary)

On encashment of leave, Government Levy should be deducted
@ 12% on the arriving amount and the same need to be paid
to the governement along with the employer contribution
(Provident Fund Account)

12% on Gross Amount from employer and employee to be paid
to Provident Fund Account without fail and immediately.


Professional Tax is a tax of the State Government, need to
be paid twice in a year September / March - October / April
on every year as per the given slabs by the governement as
far as tamilnadu is concerned it is maximum of Rs.810/- for
six month if salary (Gross) exceeds Rs.75000/-.

Is This Answer Correct ?    9 Yes 14 No

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