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?
02 May 2009
Companies now fixing salaries on the basis of CTC - Cost to company. It includes all even employer contribution of pf esi also included there for workings.
If the company has told you that ctc would be rs.2 lakhs then their contention is corret.
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
CAclubindia
