Leave Encashment Calculator
Calculate leave encashment amount with tax implications
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
Tax Calculation
✓ Tax-Free: Your encashment is within the ₹3 lakh tax-free limit!
Calculation Breakdown
Different Leave Scenarios
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
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