Leave Encashment Calculator

Calculate the taxable and non-taxable value of your unused leaves.

Monthly Basic Salary + DA

₹

Unused Leaves

Divisor (Days)

Estimated Payout

₹0

Formula: (Basic/Divisor) * Leaves

What is Leave Encashment?

Leave encashment is the process where an employee receives monetary compensation for unused earned or privileged leaves during their tenure or at the time of retirement/resignation.

Taxation Rules (India)

Government Employees: Entirely tax-free at retirement.
Non-Government Employees: Tax-free up to a certain limit (currently ₹25 Lakhs as per latest budget) under Section 10(10AA).

FAQs

Is HRA included in encashment?

No, leave encashment is typically calculated only on the Basic Salary + Dearness Allowance (DA). Other allowances like HRA, LTA, and bonuses are excluded.

Can I encash Sick Leaves?

Most company policies only allow encashment of Earned Leaves (EL) or Privileged Leaves (PL). Sick leaves and Casual leaves usually expire at the end of the year.