Work out your leave encashment from your monthly Basic + DA and the number of leave days you are encashing, on a 30-day or 26-day basis. Free and instant.
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Your monthly Basic salary plus dearness allowance.
Divide by 30 or 26 days, depending on company policy.
Number of unused leave days you are encashing.
Exemption under Section 10(10AA) depends on your situation.
Leave encashment = (Basic + DA ÷ days in month) × leave days
Companies use a 30-day or 26-day basis per policy.
Leaving a job? Also work out Gratuity Calculator, Take-home Salary Calculator, Relieving Letter format.
How is leave encashment calculated?
Leave encashment is your per-day wage multiplied by the number of leave days encashed. The per-day wage is Basic + DA divided by the number of days in the month (30 or 26, depending on company policy).
Is leave encashment taxable?
Leave encashment received while in service is generally taxable as salary. Encashment at retirement or resignation may be partly or fully exempt under Section 10(10AA), depending on whether you are a government or non-government employee and subject to the prescribed limit.
What salary is used for leave encashment?
Companies usually use Basic + DA, not your full gross salary. The exact base and the 30-day or 26-day divisor are set by your company's leave policy.
How many leave days can I encash?
This depends on your company's leave policy and the type of leave. Earned or privileged leave is usually encashable, while casual and sick leave often are not.
Please note: Outputs are AI-generated and can contain errors. Use them as a starting point and check anything important before you act on it.
Work out gratuity, PF and take-home alongside leave encashment with the Take-home Salary Calculator for India.
Open the leave encashment calculator