Leave Encashment

Leave Encashment Calculator

Calculate the amount you will receive for encashing your unused leave days. Plan your leave encashment with accurate calculations based on your salary and leave balance.

Enter Leave Details

Fill in your salary and leave balance information

Basic salary + Dearness Allowance (if applicable)
days
Total accumulated unused leave days (Earned/Privilege Leave)
Select the type of leave for encashment
Number of working days considered for leave encashment calculation
Tax treatment differs between service period and retirement
%
Income tax rate applicable to your income slab (0% if exempt)

Your Leave Encashment Amount

Enter your salary and leave details to see your encashment amount.

Encashment amount Per-day value Tax impact

Leave Encashment Formula

Per Day Value = (Monthly Salary × 12) / (Working Days × 12)
Encashment Amount = Per Day Value × Leave Balance
Net Amount = Encashment Amount - Tax (if applicable)

Tax on Leave Encashment

During Service: Fully taxable as salary income
Retirement: Exempt up to ₹25,00,000 (as per Section 10(10AA))
Government Employees: Fully exempt on retirement