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Home› HR & Payroll›Leave Encashment Calculator
HR & Payroll tool

Leave Encashment Calculator

Estimate leave encashment from eligible monthly salary, leave days and a configurable salary divisor.

Estimate leave encashment

Enter the salary base, eligible unused leave days and the divisor used by your policy or rule.

Enter the divisor specified by your policy, contract or applicable rule.
Daily eligible salary—
Estimated leave encashment—
Leave days—

How the calculation works

Daily eligible salary = eligible monthly salary base ÷ entered divisor. Estimated leave encashment = daily eligible salary × eligible unused leave days.

How to use the result

Use the exact salary components and divisor specified by the employer policy, employment contract or applicable law. The editable divisor allows the tool to model different approaches without embedding a universal assumption.

Assumptions and limitations

Leave types, maximum accumulation, encashment eligibility, tax treatment, salary base and divisor can differ by employer and jurisdiction. The calculator does not determine whether leave must or may be encashed.

Example

If the eligible salary base is 60,000, divisor is 30 and 10 days are eligible, the arithmetic estimate is 20,000.

Frequently asked questions

Why is the salary divisor editable?
Policies and rules can use different day bases, so the calculator should not assume one universal divisor.
Does this decide which leave types are encashable?
No. Enter only the leave days that your policy or applicable rule treats as eligible.
Does it calculate tax on leave encashment?
No. Tax treatment must be handled separately.
Can I use basic salary instead of gross salary?
Use whichever salary components your applicable policy or rule specifies; the tool does not choose them.