Many employers allow employees to encash unused earned or privilege leave, either annually or at the time of resignation or retirement. This calculator estimates that payout based on your salary and leave balance.
How to Use This Calculator
- Enter your basic salary + DA.
- Enter the number of eligible leave days to be encashed.
- Enter the number of days used as the divisor for a month (commonly 26 or 30, as per your company policy).
- View the estimated encashment amount.
How the Calculation Works
Per-Day Salary = (Basic + DA) ÷ Days in Month (as per company policy)Leave Encashment = Per-Day Salary × Number of Leave Days
Worked Example
Basic + DA of ₹52,000/month, divisor of 26 days, encashing 15 leave days: Per-day salary = ₹52,000 ÷ 26 = ₹2,000. Encashment = ₹2,000 × 15 = ₹30,000.
Who Should Use This
Employees planning to resign or retire with unused leave, and HR teams calculating full and final settlement amounts.
Important Considerations
The divisor (26 vs 30 days) and which components count toward "salary" for encashment purposes vary by company policy and, for government employees, by specific service rules. Confirm your employer's exact policy before relying on this estimate.
Common Mistakes
Using gross salary instead of the components actually specified in company leave policy (often just basic + DA) is a common source of over- or under-estimation.
References
See also the Gratuity Calculator and Notice Period Buyout Calculator for other full-and-final settlement components.