Leave Encashment Calculator

Most companies let earned leave accumulate and let you convert unused days to cash — commonly at resignation, retirement, or through an annual encashment window many employers offer for leave beyond a certain balance. The math is simple once you know the rate: your monthly salary divided by 30 gives a per-day rate, multiplied by the number of days encashed.

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.