Leave Encashment Calculator
Calculate leave encashment amount for unused privilege leaves
Salary & Leave Details
₹
%
% of basic salary
Unused privilege/earned leaves
Typically 26 or 30 days
Salary for Leave: Basic + DA = ₹50,000
Per Day Rate: ₹1,667
Leave Encashment Amount
₹50,000
Leave Days
30
Per Day Rate
₹1,667
Tax Calculation
Gross Encashment₹50,000
Tax-Free Limit₹3,00,000
Taxable Amount₹0
Estimated Tax (30%)- ₹0
Net Amount (approx.)₹50,000
✓ Tax-Free: Your encashment is within the ₹3 lakh tax-free limit!
Calculation Breakdown
1. Salary for Leave Calculation
Basic (₹50000) + DA (0% = ₹0)
= ₹50,000
2. Per Day Salary
Salary (₹50,000) ÷ 30 days
= ₹1,667/day
3. Encashment Amount
Per Day Rate (₹1,667) × 30 days
= ₹50,000
Different Leave Scenarios
10 days leave balance:₹16,667
20 days leave balance:₹33,333
30 days leave balance:₹50,000
45 days leave balance:₹75,000
60 days leave balance:₹1,00,000
What is Leave Encashment?
Leave Encashment is the monetary compensation received for unused privilege/earned leaves. Employees can encash accumulated leaves during employment or at retirement/resignation.
Calculation: Encashment = (Basic Salary + DA) ÷ Working Days × Leave Balance
Most companies use 26 or 30 working days per month for calculation. Check your company policy.
Tax Rules & Important Points
- •Private Sector: Leave encashment up to ₹3 lakh is tax-free at retirement/resignation
- •Government Employees: Entire leave encashment is tax-free
- •During Employment: Leave encashment is fully taxable as salary
- •Maximum leaves that can be encashed varies by company policy (typically 30-45 days)
- •Amount exceeding ₹3 lakh is taxed as per your income tax slab