Leave Encashment Calculator

Work out leave encashment instantly with clear inputs, formula shown and shareable results.

About Leave Encashment Calculator

Leave encashment is paid at basic salary per day for unused entitlement. On retirement or resignation a lifetime exemption cap applies, and anything above it is taxed at your marginal rate.

Formula

Leave encashment

Gross = (basic / 30) × leave days; taxable = gross - exemption cap

Worked example

With the default values below, Leave Encashment Calculator returns Net Leave Encashment of $90,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Monthly Basic Salaryminimum 0: 60,000
Unused Leave Daysaccepts 1–400: 45
Exemption Capminimum 0: 300,000
Marginal Tax Rateaccepts 0–60 %: 30 %

Results

Net Leave Encashment: $90,000.00
Gross Encashment: $90,000.00
Exempt Portion: $90,000.00
Tax Payable: $0.00

Step by step

1Values used
2Leave encashment
3Net Leave Encashment= 90,000.00
4Gross Encashment= 90,000.00
5Exempt Portion= 90,000.00
6Tax Payable= 0.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.

Frequently Asked Questions

Is encashment during service exempt?

Generally no. The exemption typically applies only on retirement or separation.

Which salary is used?

Usually basic plus dearness allowance, averaged over the last months of service under statutory rules.