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Dear Sir,

Would you please confirm and explain the basis for Leave Encashment as per Indian Law ?

Dear Yatin,

Hope you're doing good.

Leave encashment is calculated as per leave encashment policy of the company or the state. Say you have 40 leave balance and your gross salary is Rs. 10000 p.m. The one day EL would be equivalent to value Rs. 386.00. Some companies pay it on Basic+DA and some pay on Gross salary.

Any more question, please feel free to ask.

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Umesh Chaudhary


Any question related to HR processes, legal compliance of labour ONLY in India


Over 12 years in the field of Human Resources, industrial relations, labour laws and administration

1. An article published in India Today on sexual harassment, 2. People challenges on How to retain talent 3. Management & Human Resource

MBA (HR), M.Phil (HR). I hold various accreditation in the area of Human Resources, Industrial Relations and Employment Laws. I strongly feel the more knowledge you share the more you'll get to learn. There is no age to learning therefore I stay abreast with new developments into HR and Labor Laws; I prefer to attend regular seminars, professional gathering, workshops and lectures. I am also associated with All India Management Association, National HRD Network (Delhi Chapter).

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