LEAVE CALCULATOR
Unused leave, converted to pay.
The formula is simple. What varies between employers is the wage base and the days divisor — both of which change the answer materially.
Enter your details
Fields are pre-filled with typical values — type your own or drag the sliders, and everything recalculates instantly. Nothing is sent to a server.
Most policies use 26 working days or 30 calendar days.
Calculated on FY 2025-26 statutory rates. Indicative only — confirm against current notifications before filing.
Leave encashment payable
₹27,692
Per-day wage
₹1,538
Days encashed
18
Monthly basic + DA
₹40,000
Encashment computed on the configured wage base
Full breakdown
Step-by-step calculation
HOW IT WORKS
The formula used
Encashment is a per-day wage multiplied by the number of days being encashed.
Monthly basic + DA ÷ days basisPer-day wage × encashable leave daysUNDERSTANDING IT
About the leave encashment calculator
Leave encashment converts an accumulated leave balance into money, either at the end of a leave year or as part of exit settlement. The calculation itself is straightforward, but two policy choices drive the outcome.
The first is the wage base. Most Indian employers encash on basic plus dearness allowance rather than gross salary, since gross includes allowances tied to attendance. The second is the days divisor — 26 working days produces a higher per-day rate than 30 calendar days.
Applying these inconsistently between employees is one of the more common sources of settlement disputes, which is why the policy should be documented and applied uniformly.
Worked example
Take a monthly basic plus DA of ₹40,000 with 18 encashable days on a 26-day basis.
Per-day wage is ₹40,000 ÷ 26, which is ₹1,538. Multiplied by 18 days, encashment payable is ₹27,692. On a 30-day basis the per-day wage would be ₹1,333 and the payout ₹24,000 — a difference of nearly ₹3,700 from the divisor alone.
WHY IT HELPS
What this calculator is good for
Apply policy consistently
Set the wage base and divisor once and apply them uniformly.
Settle exits faster
Encashment computed from the leave balance rather than reconstructed manually.
See the divisor effect
Compare 26-day and 30-day bases before fixing policy.
WATCH OUT
Common mistakes
These are the errors that most often produce a wrong number.
Encashing on gross salary when policy specifies basic plus dearness allowance.
Mixing 26-day and 30-day divisors across employees.
Encashing leave types the policy does not permit to be encashed.
Overlooking the different tax treatment of encashment during service versus at exit.
HR TIPS
Practical guidance
Document the wage base
State explicitly whether encashment is on basic plus DA or on gross.
Cap accumulation
A carry-forward cap keeps the encashment liability predictable.
Settle at exit automatically
Encashment should flow into final settlement with the correct closing balance.
QUESTIONS
Leave Encashment Calculator — frequently asked
Divide monthly basic plus dearness allowance by the days basis in your policy to get a per-day wage, then multiply by the number of encashable days.
Both are used in practice. A 26-day divisor treats the month as working days and produces a higher per-day rate; 30 days treats it as calendar days. The choice should be stated in policy and applied consistently.
Tax treatment differs between encashment during service, which is generally taxable, and encashment at retirement or resignation, which may be exempt up to statutory limits.
This is a policy decision. Earned or privilege leave is commonly encashable, while casual and sick leave usually are not.
Results are indicative and computed on FY 2025-26statutory rates using conventional salary-structure assumptions. Your actual figures depend on your employer’s structure, your state and your declarations. Confirm against current notifications before relying on these numbers for filing.
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