Hello everyone We are revamping our levae encashment policy. As some companies offer the encashment on basic and some gp ahead with gross , looking forward to know what do you guys follow?

Leave encashment has a tax and budget impact. Depending on the results of both, decisions are made.

Exactly Wristy. As of now we are following calculation on basic considering the budget. But recently we came to know that the suggested practice is to go ahead with gross as per law ( wages defined) hence wanted to understand what does people follow , although majorly have seen both practices.

The law you are mentioning is yet to have the assent I assume. I have agree with your results that both the practices are being followed by the companies, depending on the factors mentioned. If the company has financials, I always suggest salary as it is 1 day pay leave.

Payable on gross salary, covers in the one of the act. We are asked to change our policy by the consultant we had onboarded for setting the labour law practices