Leave Salary Calculation
Leave Encashment Calculator
Calculate leave encashment amount on retirement, resignation, or annual encashment. Tax exemption up to ₹25 Lakh under Section 10(10AA).
Leave Encashment Details
Encashment Type
₹
₹
Includes Earned Leave (EL), Privilege Leave (PL), or any accumulated leave as per company policy
Use 30 for monthly basis or 26 for calendar days (excluding Sundays)
Encashment Calculation
Total Leave Encashment Amount
₹0
For 0 days of accumulated leave
Last Drawn Salary (Basic + DA)
₹0
Per Day Salary
₹0
Salary / 30 days
Formula: Encashment = (Basic + DA) × (Leave Days / Average Working Days per Month)
Tax Treatment
Tax Exempt Amount (Section 10(10AA))
₹0
Max ₹25,00,000 for non-government employees
Taxable Amount
₹0
Note: Tax liability depends on your total annual income slab. The above estimates use 20% and 30% brackets with 4% cess included.
Net Amount Received
After Tax (30% bracket)
₹0
After Tax (20% bracket)
₹0
Leave Encashment Rules
Eligibility & Rules
Earned Leave (EL): Usually 15-30 days per year
Can accumulate and carry forward (no expiry)
Encashable on retirement, resignation, or as per policy
Company policy may limit maximum encashable days
Tax Exemption (Retirement)
Private Sector: Max ₹25,00,000 tax-free (Section 10(10AA))
Government: Fully tax-exempt (Section 10(10AA)(i))
Only on retirement/superannuation, not resignation
Limit increased from ₹3L to ₹25L in FY 2023-24
Calculation Method
Formula: (Basic + DA) × Leave Days / Working Days
Use last drawn salary (at time of exit)
Allowances (HRA, Transport) not included
Working days: 30 (monthly) or 26 (calendar days)
Types of Encashment
On Retirement: Tax exemption up to ₹25L
On Resignation: Fully taxable, no exemption
Annual Encashment: During service, fully taxable
Death: Payment to legal heirs (exempt)
Automate Leave & Encashment Management
Our HRMS automatically tracks leave balance, calculates encashment amounts, handles tax treatment, and processes payments as per company policy and labor laws.