Leave Salary, whether it is included in Annual package

This query is : Resolved

Jai Bajaj (Querist)
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02 May 2009 I joined the company in starting of april 2009. My annual package was decided 200,000/- it was formal finallization. Till the date no confirmation letter was given. While giving the salary cheque i was quite shocked to know that my monthly salary that would be 16666/- comes to approx 14738.
The computation of salary is as follows:
Basic - 90000
Bonus - 8400 (that on basic as per Bonus Act)
Leave salary for 1 month - (200000-8400)*13= 14738

Actualy they included leave salary and divide annual package by 13 and their contention was that NO WORK NO SALARY

It means to avail 2Lac i have to work 365 days except public holidays. Than what does the mean of leave salary?
My contention is that leave salary is a benefir and that accrue as an employee works. so if in my account i have accrued leave salary, i have 2 option of utilize it - 1. To cash the leave or 2. Avail this by not going to office.
Leave salary is other than normal salary and should not be included in Annual package.

Please guide me on this. What is the right way about leave salary? Whether it is included in Annual package or it is extra benefit. And can an employer put it into contract like this?

taxindiaconnect

taxindiaconnect (Expert)
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02 May 2009 Your contention is right and it should not be included in package.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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03 May 2009 As per service contract and discipline, normally, every employee is allowed certain period of leave (with pay) every year. Such leave may be availed during the year or accumulated by the employee. The accumulated leave lying to the credit of an employee may be availed subsequently or encashed. When an employee receives an amount for waiving leave lying to his credit, such amount is known as leave salary

SO IT SHOULD NOT BE INCLUDED, IT IS SIMILAR TO OVERTIME, WHICH SHALL BE PAID IF YOU DOES NOT TAKE THE PROVIDED LEAVE

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Jai Bajaj

Jai Bajaj (Querist)
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04 May 2009 Thank all of you for quick response.

I want to show some more points to clear the matter. On the day of joining the employer said me that we are keeping you in for 10 days as probation period afterwards we will give you confirmatin letter. I agree on this and start working and since then 1 month has passed.

But they did not show me their terms and conditions and now I m getting less what i was getting earlier. I just asked about package. And on their side they even do not give appointment letter yet.

So i m thinking to content on these above mentioned point?
would it be better?