Razorpay

Leave Encashment Calculator

Leave Encashment Calculator

Leave Encashment Calculator

Estimate Leave Payout

Estimate Leave Payout

Calculate leave encashment instantly, find how much you're entitled to, tax benefits, and plan your annual leave payouts with ease

Calculate leave encashment instantly, find how much you're entitled to, tax benefits, and plan your annual leave payouts with ease

Total number of years worked (whole numbers only)
Average of last 10 months basic salary + dearness allowance
Total accumulated unused leaves available for encashment
Annual leave entitlement as per company policy

A reliable leave encashment calculator helps employees and employers determine the exact payout for unused leaves. This tool simplifies complex calculations, ensuring transparency and accuracy for annual leave encashment - especially crucial for private company payroll processing.

What is Leave Encashment?

Leave encashment is the process of converting unused paid leave into a cash payout, either during service, at retirement, or at the time of resignation. It's a significant component of employee benefits, providing monetary compensation for unavailed leaves and supporting better financial planning for both employers and employees.

Benefits of Using Leave Encashment Calculator

Accurate Calculations

Get precise leave encashment amounts based on your salary, years of service, and unused leaves.

Tax Planning

Understand tax implications and exemptions to plan your finances better.

Quick & Easy

Calculate your leave encashment in seconds with our user-friendly interface.

Types of Leaves Eligible for Encashment

Earned Leave (EL): Most organizations allow encashment of earned/privilege leaves.

Annual Leave: Commonly encashed, subject to company policy.

Other Paid Leaves: Some companies include casual or sick leaves, as per HR policies.

Taxation of Leave Encashment

Leave encashment received by employees during service is usually taxable as per individual tax slabs. However, at retirement, certain exemptions apply under Section 10(10AA) of the Income Tax Act (up to a specified limit for non-government employees). Understand your tax liability and plan payouts efficiently.

Who Should Use This Calculator?

Employees planning retirement and want to know their leave encashment amount

HR professionals calculating leave payouts for employees

Government and non-government employees understanding tax implications

Financial planners helping clients with retirement planning

Payroll managers ensuring accurate leave encashment processing

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Frequently Asked Questions