Leave Encashment Calculator

A leave encashment calculator works out the cash payable for unused earned leave by dividing your monthly basic + DA by 30 to get a per-day rate and multiplying it by the leave days encashed.

Leave encashment pays your monthly salary divided by 30 — a per-day rate — multiplied by the number of unused earned leave days you encash. Most companies let this leave accumulate and convert to cash on that basis, commonly at resignation, retirement, or through an annual encashment window many employers offer for leave beyond a certain balance.

This calculator applies exactly that formula to your basic salary plus dearness allowance (the components leave encashment is typically based on — check your company's policy, as some also include other fixed allowances). The result is a straightforward per-day rate times days, useful for estimating what a resignation payout will include or deciding whether to encash accumulated leave now versus carrying it forward.

Tax treatment differs by circumstance and matters for planning: leave encashment received during employment (an annual encashment scheme) is fully taxable as salary income. At retirement or resignation, however, non-government employees get an exemption up to ₹25 lakh (a limit revised upward in recent years) on encashment received at that time, subject to conditions in the Income Tax Act — government employees get full exemption. Factor the tax treatment into whether encashing now or later suits your situation better.