Cash value of unused leave. The Leave Encashment Calculator takes monthly basic + da, unused leave days to encash, days per month used by the employer (26 or 30) and returns leave encashment plus per-day value. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Payroll figures should follow the rules in your contracts and local law. Where a rule differs between states or countries, adjust the inputs; the calculator shows its assumptions so you can check them against your own policy. Use the worked example below to check the maths against your own figures.
How the Leave Encashment Calculator works
Unused earned leave is paid out at the per-day salary, usually on basic plus DA. Whether the employer divides by 26 or 30 days changes the figure by 15%, so check the policy. In India, encashment received on retirement or resignation is tax-free up to ₹25 lakh for private employees.
Worked example
With the example values (monthly basic + da of ₹60,000, unused leave days to encash of 30, days per month used by the employer (26 or 30) of 30), the leave encashment is ₹60,000.00; per-day value ₹2,000.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is leave encashment calculated?
encashment = monthly salary ÷ days per month × leave days.
Which figures do I need?
Monthly basic + da, unused leave days to encash, days per month used by the employer (26 or 30). Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Do the rules differ by location?
Yes. Statutory rates, ceilings and eligibility conditions vary by country and often by state. Adjust the inputs to your jurisdiction and confirm with your payroll provider or labour law adviser.
