Leave Encashment Calculator
Calculate the payout for encashing your unused earned leave.
Your inputs
Formula: (basic + DA) ÷ 26 × leave days encashed. Encashment at retirement is tax-exempt up to ₹25 lakh for non-government employees; during service, it's fully taxable.
Estimates only. Figures are indicative and do not constitute financial advice.
About the Leave Encashment Calculator
Leaving unused earned leave (EL) on the table when you resign, or wondering what your accumulated privilege leave (PL) is actually worth? "Leave encashment calculator," "EL encashment calculator," or "PL encashment calculator" all answer the same question — different companies and HR departments use different abbreviations for essentially the same accumulated-leave payout, using the standard per-day wage formula most Indian employers apply.
Leave encashment is calculated as your basic salary plus dearness allowance, divided by 26 (representing a standard working-days month), multiplied by the number of leave days you're encashing. This calculator gives you that figure instantly — useful when negotiating your full and final settlement after resigning, deciding whether to encash leave now versus carrying it forward under your company's leave policy, or simply understanding a line item on your relieving letter paperwork. Tax treatment differs depending on when you encash: leave encashment at retirement or resignation is tax-exempt up to ₹25 lakh for non-government employees (a limit raised from ₹3 lakh in recent years), while leave encashed during active service — for instance, if your company allows partial encashment annually — is fully taxable as part of your salary income for that year.
How to use this calculator
- Enter your monthly basic salary + DA.
- Enter the number of leave days you're encashing.
- See your leave encashment amount.
Frequently asked questions
›What is the formula for leave encashment?
(Basic salary + DA) ÷ 26 × number of leave days encashed — the 26 represents a standard month's working days.
›Is leave encashment taxable?
Leave encashed during service is fully taxable as salary income; leave encashment at retirement or resignation is tax-exempt up to ₹25 lakh for non-government employees, subject to specific rules.
›Can I carry forward unused leave instead of encashing it?
This depends entirely on your employer's leave policy — many companies cap how many leave days can be carried forward each year, with the rest either lapsing or being auto-encashed.
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Read the full guide
Leave Encashment: The ₹25 Lakh Exemption That Only Applies When You Leave