Leave Pay is a situation in which a worker far from work, but still receives payment.
A person gets a salary of Rs.12000 per month and allowed leave days per month is 2. Calculate Leave Encashment Payment.
Employee salary = Rs.12000 Leave Days Per month = 2
Substitute the values in the formula,
|Annual leave encashment||= (leave days x 12) x (Gross Salary x 12 / 365)|
|= (2 x 12) x (12000 x 12 / 365)|
|= Rs. 9468.493|