Leave Encashment Calculator

Leave encashment is the payment you receive from your employer in exchange for unused earned leave (privilege leave) accumulated during your service. It is typically paid at retirement or resignation.

For Central and State Government employees, leave encashment received at retirement is fully exempt from tax. For private sector (non-government) employees, it is tax-exempt up to a maximum limit of ₹25 lakh, subject to a maximum accumulation of 300 days of earned leave.

Yes. Both Basic Pay and Dearness Allowance are included in the salary used for calculating leave encashment.

No. Other allowances like House Rent Allowance (HRA), travel allowance, and special allowances are strictly excluded from the leave encashment formula.

Yes. For both government and private sector employees, the maximum number of days that can be encashed for tax exemption purposes is capped at 300 days. Any leaves accumulated beyond 300 days generally lapse or become taxable depending on company policy.