Under the Factories Act, workers earn 1 day of earned leave for every 20 days of work (approximately 15 days per year for a 300-day work year). Many companies follow their own policies, typically 1.5 to 2 days per month (18-24 days per year).
Typically no. Casual Leave (CL) and Sick Leave (SL) usually lapse at the end of the year if not utilized. Only Earned Leave / Privilege Leave (EL/PL) can be carried forward to the next year, subject to a maximum limit (usually 30-60 days).
Leave encashment is calculated based on last drawn basic salary + dearness allowance (DA). For daily rate: (Basic + DA) × 12 / 365. Some companies use average of last 10 months' salary. Tax treatment differs for encashment during service vs. on retirement.
Maximum accumulation varies by company policy and state laws. Common limits are 30, 45, or 60 days. Any leave beyond this limit typically lapses. Some organizations allow unlimited accumulation for leave encashment on retirement.
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