Where to add the leave encashment formula?

According to labor law, salaried employees are entitled to a minimum number of paid leaves every year. However, employees may not always use all their entitled leave days in a year. Many employers allow employees to carry forward such unutilized paid leaves, resulting in an accumulated leave balance at the time of retirement or resignation. This means that employers must compensate for these unutilized leave days, a concept known as leave encashment.

So, in order to add a Leave Encashment Formula, log in to your Keka portal and click on the Payroll (1) tab. Under Settings (2), find Leave Encashments (3). Now click on Add Encashment Policy (4). 

 

In the box that pops up, first, you have to give the name of the encashment policy (1), and below that you can input the formula. Click on the +Existing Salary Component option to see the list of available components (2) which can be used in the formula, just click on the component and it will be inserted in the field.

Once the formula is updated, just click on Save and this Leave Encashment policy will be saved in the Keka system.

If you have any more questions, please refer to the other articles or contact us.