1. Meaning of Non-Government Employees. Non-government employees includes all employees other than employees of Central Government and State Government.
2. Meaning of Salary. It shall mean Basic Salary, Dearness Allowance (if given under the terms of employment or if it enters into pay for retirement benefits) and commission as fixed percentage of turnover achieved by him. Then,
Salary = Basic Salary + D.A. (enters)/D.P + Commission on Turnover
3. Calculation of Average Salary of 10 months. Average salary of 10 months is to be calculated on the basis of the average salary drawn by the employee during the period of 10 months immediately preceeding his retirement whether on superannuation or otherwise.
Example 1: If employee retires on December 31, 20 1-3 then average salary of 10 months will be calculated by taking salary drawn during March 1, 2013 to December 31, 2013:
Example 2 : If employee retires on December 15, 2013 then average salary of 10 months will be calculated by taking salary drawn during the period March 16, 2013 to December
4. Meaning of Approved Period of Leave
Approved Period of Leave = 30 days/i month leave for every completed year of service. Note. Service period in fraction of the year (whatsoever it may be) shall be ignored, i.e., shall not be taken into consideration while calculating total approved period of leave on the basis of service period.
5. Meaning of Approved leave(s) left on leaving job
It shall be calculated as follows :
The approved leave(s) on the basis of completed year of service = x x x x
Less Leave(s) taken during service = x x x x x x
Less Leave(s) encashed during service = x x
Approved leave(s) left on leaving job = x x x x
6. Whole life exemption limit. The notified maximum exemption limit of ` 3,00,000 is a whole life exemption limit for an employee in respect of leave encashment received at the time of leaving job. It can be explained as follows :
(a) If employee receives leave encashment for the 1st time in his life at the time of leaving job: While calculating exemption, the maximum notified limit of ` 3,00,000 shall be applicable and he shall be granted exemption as per the least of 4 limits.
(b) If employee receives leave encashment for the second/third or subsequent times: While calculating exemption in respect of leave encashment on subsequent occasions, the maximum notified exemption limit shall be reduced by the exemption claimed in the past.