Calculating leave encashment for end-of-service
Leaves eligible for End of Service can be configured from payroll configuration.
To do this, follow the steps mentioned below -
In the side menu, go to Settings and then to the Payroll tab for Payroll settings.
Scroll down to the End of Service eligibility section, and click on the dropdown to see if there are any leave types configured for EOS encashment. If not, click on Configure to create the configuration.
You will be able to see all the different leave types that have been created for your employees on Bayzat.
Select the particular leave types which you want to add to the end of service calculation as part of the employee's leave encashment amount.
From the dropdown, select whether you want the leave encashment amount to be calculated on the basis of only the Basic Salary or Basic Salary + Allowances
The daily rate calculation of each of these leave types will be on the basis of -
Basic Salary OR Basic Salary + (All) Allowances / Calendar OR Working days in the departure month of the employee
Note: The Calendar day or Working day calculation of these leave types is based on the set up you have configured in the Time Off policy Configuration section of your Bayzat account and cannot be changed from here.
For example, if your Vacation leave policy is set up as 30 Calendar Days in a year, then the Vacation leave encashment amount will be determined by dividing the monthly salary of the employee by the number of Calendar days in the departure month of the employee.
Once this is finalized, click on Save.
The leave encashment configuration you have set up here will now be visible in the end-of-service calculation for all employees in your organization.