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Leave Encashment Calculator (India)
Convert unused leave days into cash using your wage base and divisor. Enter numbers and click Calculate — results appear on this page.
How this Leave Encashment Calculator works
Encashment ≈ (monthly encashment wage ÷ days in divisor) × encashable leave days. Companies may use basic only, basic+DA, or gross; divisors of 26 or 30 are common — match your leave policy wording.
How to use
- Enter the monthly wage base defined for encashment in HR policy.
- Specify encashable leave days (unused EL/PL as per rules).
- Set days-in-month divisor (30 or 26 per policy).
- Validate tax treatment and approval workflow before payroll posting.
Related calculators
Operationalise payroll with IntelloHRM payroll after you finish estimating.
Elementor: insert shortcode [ih_calculator type="leave_encash"] or the IH Calculator widget.
Leave Encashment Calculator — FAQs
Is leave encashment mandatory on exit?
Depends on company policy and state shops act rules — not always identical to gratuity.
Which leave types can be encashed?
Often earned/privilege leave; casual leave usually lapses — read your policy.
Is encashment taxable?
Tax rules differ for active employment vs separation — consult your CA for exemptions.
Why use 26 vs 30 days divisor?
Some policies align with paid-day conventions in payroll — inconsistent divisors change payout materially.
Can encashment happen while employed?
Some employers allow annual encashment caps — policy governs timing.
Does IntelloHRM track leave balances?
Yes — leave balances and approvals feed payroll when encashment is processed.
How is encashment different from LWP recovery?
Encashment pays out unused credit; LWP reduces pay for unpaid days — opposite directions.
Should encashment include HRA?
Only if your policy wage base includes HRA — many use basic only.
What approvals are needed?
Manager and HR sign-off with balance snapshot — avoid encashing beyond accrued credit.
Can encashment be part of CTC?
Some employers show notional encashment in CTC — disclose whether it is guaranteed or conditional.
After the Leave Encashment Calculator, run real payroll ops
Estimates help planning — IntelloHRM turns attendance, leave, and payslips into a repeatable process.
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