15 April 2015
Many organizations will be having policy in giving one or two allowed leaves in a month. If the does not employee avail it, he will be given credit of that. After the completion of specified period, the leave at the credit will be compensated by giving him as Leave Encashment. Since he has forgone allowed leaves, it will be given as a compensation w.r.t thsi salary. This is the concept of Leave Encashment.
CAclubindia
