Leave Encashment Calculator
Estimate leave encashment from basic/DA or gross using a clear daily-rate basis.
Required only if basis is gross daily.
Employers use 26, 30, or calendar days — match your policy.
General estimate — employer policy and tax treatment may differ.
A general encashment estimator: daily rate = chosen salary component ÷ days in month; payout = daily × eligible days. This is not a universal statutory rule and does not compute income-tax exemption under Section 10(10AA). Confirm with employer policy and a tax advisor.
What is leave encashment?
Payment for unused privileged/earned leave when you resign, retire, or when your employer allows encashment during service.
How is leave encashment calculated?
Most payroll policies use a daily rate from basic (often + DA) divided by 26 or 30 days, multiplied by encashable leave days. Pick the basis that matches your HR policy.
Which salary components are considered?
This tool supports basic only, basic + DA, or gross monthly. Some employers include special allowances — enter those in gross if needed.
Is this the tax-exempt amount?
No. Tax treatment of leave encashment (e.g. Section 10(10AA) for government vs non-government) is separate and not computed here.