About this leave encashment
Calculate the cash value of unused earned or privilege leave. HR teams can use this estimate during year-end encashment or employee separation.
How it works
The calculator divides the selected monthly salary basis by the chosen day divisor, then multiplies the daily rate by unused leave days. Company policy may use Basic only, Basic plus DA, gross salary, or a different divisor.
- Step 1Enter the monthly salary basis.
- Step 2Enter unused leave days and divisor.
- Step 3Review estimated encashment.
Frequently asked questions
- Which salary should be used?
- Use the salary component specified in your leave policy or employment terms, commonly Basic or Basic plus DA.
- Is leave encashment taxable?
- Tax treatment depends on employment type, timing, and applicable exemptions; consult a tax professional.