Leave Encashment Calculator
Estimate leave encashment from a monthly salary basis, eligible leave days and a configurable salary divisor.
Leave encashment details
Enter the salary basis, eligible leave days and divisor.
Estimated Leave Encashment
₹10,000.00
This estimate is based on the salary basis, eligible leave days and divisor you enter. Actual leave encashment may differ depending on company policy, leave type, employment terms and payroll rules.
How to calculate leave encashment
A simple leave encashment calculation first determines the daily salary rate and then multiplies it by the number of leave days eligible for encashment.
Daily salary rate
Monthly Salary Basis
÷ Monthly Divisor
= Estimated Daily Salary Rate
Leave encashment formula
Estimated Daily Salary Rate
× Eligible Leave Days
= Estimated Leave Encashment
Leave encashment example
Assume the applicable monthly salary basis is ₹30,000, the employee has 10 eligible leave days, and the organization's calculation uses a divisor of 30.
What can affect leave encashment?
Frequently asked questions
How is leave encashment calculated?
A simple leave encashment estimate divides the applicable monthly salary basis by the selected divisor to get a daily rate, then multiplies that rate by the number of eligible leave days.
What salary should I use for leave encashment?
Use the salary basis defined by your organization's leave encashment policy or employment terms. Some policies may use basic salary or another specified wage component.
Why does the calculator allow different divisors?
Organizations can use different methods to derive a daily salary rate. The calculator therefore lets you use a divisor such as 30, 26 or another value that matches your policy.
Can I calculate half-day leave encashment?
Yes. The calculator supports fractional leave values such as 0.5, 1.5 or 7.5 days.
Can all unused leave be encashed?
Not necessarily. Eligibility can depend on the leave type, company policy, carry-forward rules, employment terms and other applicable conditions.
Is the result suitable for official payroll?
The result is an estimate. Official leave encashment should follow the organization's configured leave policy, eligible balance, salary basis and payroll rules.
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