Leave Encashment Calculator
Estimate the amount you may receive for unused paid leave based on your eligible salary, unused leave days and working-day basis.
Enter Salary & Leave Details
Enter your eligible salary and unused leave balance to estimate the encashment.
₹0
Estimated amount for your eligible unused leave balance
Calculation Details
Salary Details
Leave Details
How the Calculation Works
If eligible monthly salary is ₹30,000, the working-day basis is 26 days and unused leave is 30 days, the estimated leave encashment is approximately ₹34,615.
How Leave Encashment Is Calculated
Leave encashment generally converts eligible unused leave into a monetary amount based on the salary components and calculation rules applicable to the employee.
Enter Eligible Salary
Enter the monthly Basic Salary and eligible Dearness Allowance.
Enter Leave Balance
Enter the number of unused eligible leave days available for encashment.
Calculate Daily Salary
Eligible monthly salary is divided by the selected working-day basis.
Calculate Encashment
Daily eligible salary is multiplied by the number of eligible unused leave days.
Basic Calculation
This calculator uses the salary and working-day basis entered by the user. Your employer may use a different formula or eligible salary components.
Important Information
Leave encashment policies vary between employers and may depend on company policy, employment terms and applicable laws.
Some employers may calculate leave encashment using Basic Salary, Basic plus DA, or another defined salary component.
The 26-day calculation basis is commonly used in some payroll calculations, but it is not universal. Select the basis applicable to your salary policy.
Tax treatment can also vary depending on the circumstances of the employee and applicable tax rules.
Leave Encashment Calculator FAQ
What is leave encashment?
Leave encashment is the payment received for eligible unused leave, subject to the applicable employment policy and rules.
What salary is used for leave encashment?
The applicable salary component depends on the employer's policy. Some calculations may use Basic Salary, while others may include eligible Dearness Allowance or other components.
Why is 26 days used in the calculator?
A 26-day basis is used in some payroll calculations to determine daily salary. However, the actual divisor depends on the applicable company policy or employment terms.
Can I use 30 days instead of 26 days?
Yes. The calculator allows you to select 26, 30 or 31 days depending on the basis applicable to your calculation.
Is leave encashment taxable?
Tax treatment depends on factors such as the nature of employment, timing of payment and applicable tax rules. Consult the applicable tax guidance or a qualified tax professional for an official determination.
Is the calculator result exact?
No. The result is an estimate based on the values entered. Your employer's payroll system may use different salary components, rounding rules or eligibility conditions.