Calculate the exact monetary value of your unused earned leaves - for retirement, resignation, or mid-service encashment. Free, instant, and private.
Enter your last drawn Basic+DA salary and unused earned leave days - get the per-day value and total encashment amount instantly.
Leave encashment is calculated using a straightforward formula - the monthly salary is divided by 30 to get a per-day value, which is then multiplied by the number of unused leave days:
For example: Monthly Basic+DA of ₹45,000 with 30 unused leave days → Per-day value = ₹1,500 → Total encashment = ₹45,000.
Note that some employers use 26 working days as the divisor instead of 30 calendar days - always verify your company's leave policy. This calculator uses the standard 30-day divisor as per common industry practice and government guidelines.
The tax treatment of leave encashment differs significantly depending on who you work for and when the encashment occurs:
During-Service Encashment: Leave encashment received while still employed (mid-service) is fully taxable as salary income - regardless of whether you are a government or private employee. Only encashment at separation (retirement/resignation) qualifies for the tax exemption.
The ₹25L exemption limit applies per employer. If you work for multiple employers in a lifetime, the cumulative exempt amount across all of them is capped at ₹25 lakhs in total.
Sample encashment amounts at common salary and leave day combinations:
| Basic + DA (Monthly) | Per-Day Value | Unused Leave Days | Encashment Amount |
|---|---|---|---|
| ₹25,000 | ₹833 | 15 days | ₹12,500 |
| ₹40,000 | ₹1,333 | 30 days | ₹40,000 |
| ₹60,000 | ₹2,000 | 45 days | ₹90,000 |
| ₹80,000 | ₹2,667 | 60 days | ₹1,60,000 |
| ₹1,00,000 | ₹3,333 | 90 days | ₹3,00,000 |
| ₹1,50,000 | ₹5,000 | 120 days | ₹6,00,000 |
Encashment above ₹25,00,000 (for private employees) is taxable as salary income in the year of receipt. Government employees have no cap.
Not all types of leave are eligible for encashment - the rules vary by employer type and applicable laws:
Earned Leaves (Privilege Leaves): These are the primary leaves eligible for encashment. Under the Factories Act and Shops & Establishments Acts, employees typically accumulate earned leave at the rate of 1 day per 20 working days. Most companies allow carry-forward of up to 30–45 days with encashment on separation.
Casual Leaves and Sick Leaves: These generally cannot be carried forward or encashed. They lapse at the end of the calendar year in most organisations.
Government Employees: Central government employees can accumulate up to 300 days of earned leave (EL). The entire balance is encashable at retirement. They can also encash up to 30 days during service (in conjunction with leave travel concession - LTC).
Enter your Basic+DA and unused leave days above - get your exact payout in seconds. No sign-up required.
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