India · Everyday tools
Leave Encashment Calculator
Estimate the taxable or tax-exempt cash payout for your accumulated unused leaves upon resignation or retirement under Indian tax laws.
Interactive calculator
Calculate leave encashment payout
Estimate your earned leave encashment gross pay and check the tax exemption details under Section 10(10AA) of the Income Tax Act.
Results
Gross Leave Encashment
₹50,000
Total pre-tax payout amount
Tax Exempt Portion
₹50,000
Amount exempt from income tax
Taxable Amount
₹0
Added to salary for tax computation
How to use it
- 01Enter your monthly Basic Salary + Dearness Allowance (DA).
- 02Input your total accumulated unused earned leaves.
- 03Specify if you work in the government or private sector to see tax exemption results.
Result guide
- Gross payout is calculated based on daily basic rate multiplied by leaves.
- Government employees receive fully tax-free leave encashment.
- Private sector employees have a maximum statutory exemption cap of ₹25,00,000 (increased in recent budgets).
About this calculator
Employees in India can often cash out ('encash') their unused earned or privilege leaves upon retirement, resignation, or termination.
This calculator helps estimate the gross payout you will receive and calculates the tax exemption threshold under Section 10(10AA) of the Income Tax Act.
Frequently asked questions
Is leave encashment taxable in India?
For government employees, leave encashment received at the time of retirement or resignation is completely exempt from tax. For non-government employees, it is exempt up to a statutory limit of ₹25,00,000, subject to basic salary limits and conditions under Section 10(10AA).
How is the daily salary calculated for leave encashment?
For the purpose of calculating leave encashment, a month is standardly considered as 30 days. The daily wage rate is computed as (Monthly Basic Salary + DA) / 30.
Can I encash casual leaves or sick leaves?
No, under standard Indian labor laws (Factories Act / Shops and Establishments Act), only Earned Leaves (EL) or Privilege Leaves (PL) can be accumulated and encashed at exit. Casual and sick leaves expire annually.
Method and limitations
This calculator uses the formula and assumptions described on this page. We do not claim independent professional review. Direct references will be listed here when they support a specific rule or data source used by this calculator.
Results are estimates for general information. Verify current rules and assumptions before making financial, tax, or health decisions.
Read our Editorial and Verification Policy →Related calculators
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