How to Calculate Leave Pay and Encashment Payment

How to Calculate Leave Pay and Encashment Payment - Definition, Formula, Example

Definition:

Leave Pay is a situation in which a worker far from work, but still receives payment.

Formula:

Annual leave encashment = (leave days x 12) x (Gross Salary x 12 / 365)
Example:

A person gets a salary of Rs.12000 per month and allowed leave days per month is 2. Calculate Leave Encashment Payment.

Given,

Employee salary = Rs.12000 Leave Days Per month = 2

Solution:

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

english Calculators and Converters

Ask a Question


Sitemap