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Annual leave salary calculation as per the new labor law

Dear sir/madam,

Annual leave salary calculation as per the new labor law.

Can you please clarify the correct annual leave salary rules?

Some say it is basic + HRA for the month you will take off, others say it is full salary, and somewhere I read it is basic + HRA (annual leave salary) plus the normal salary you get.

Can you please clarify?

Thanks for your valuable time and kind assistance!

Hussain Lootah & Associates
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7 Sep 2022, 08:21

Dear questioner,

Please be noted that article 29 of the new labor states provisions regarding annual leave.

7 Sep 2022, 08:31

Please note that the employee is entitled to get an annual leave entitlement based on the full wage.

7 Sep 2022, 08:32

This is as per article 29 (1).

7 Sep 2022, 08:34

If the employee quits the work before using the accrued annual leave, such leave may be surrendered and accepted as payment in lieu; such payment shall be based on the basic wage.

7 Sep 2022, 08:34

This is as per Article 29 (9).

7 Sep 2022, 08:42

Thank you miss Rajasree for your time and kind assistance!

You helped me again to clarify the legal doubt.

Just for my understanding, my contract is still on an unlimited contract made on May 2021, so will the new labor law apply to that or not?

If not, then what were the old rules for annual leave, please?

Thank you!

7 Sep 2022, 08:44

On annual leave, yes. it is applicable.

7 Sep 2022, 08:45

On gratuity calculation, the employer has discretion.

7 Sep 2022, 08:52

Thank you so much, miss Rajasree!

You helped a man to get to know his rights which will help him in the future for sure (and to make others aware of the same).

Your kind support, not just to me but to all people who post their queries here is commendable and much appreciated.

With Regards,

P.S.

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