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Free tool
Leave encashment = monthly basic + DA ÷ 30 × unused earned leave days. Example: ₹40,000 and 20 days = ₹26,667. Encashment during service is fully taxable; at exit, up to ₹25 lakh can be tax-free.
Leave encashment
₹26,667
At exit, private-sector employees are exempt up to the lowest of ₹25 lakh, 10 months' average salary, the actual amount, and cash for unused leave counted at no more than 30 days per year of service. Your employer applies the last test from your leave history.
Quick reference
| Basic + DA / month | 10 days | 15 days | 30 days | 45 days | 60 days |
|---|---|---|---|---|---|
| ₹20,000 | ₹6,667 | ₹10,000 | ₹20,000 | ₹30,000 | ₹40,000 |
| ₹30,000 | ₹10,000 | ₹15,000 | ₹30,000 | ₹45,000 | ₹60,000 |
| ₹40,000 | ₹13,333 | ₹20,000 | ₹40,000 | ₹60,000 | ₹80,000 |
| ₹50,000 | ₹16,667 | ₹25,000 | ₹50,000 | ₹75,000 | ₹1,00,000 |
| ₹75,000 | ₹25,000 | ₹37,500 | ₹75,000 | ₹1,12,500 | ₹1,50,000 |
| ₹1,00,000 | ₹33,333 | ₹50,000 | ₹1,00,000 | ₹1,50,000 | ₹2,00,000 |
What HR teams get wrong
Step-by-step examples: how to calculate leave encashment in India. Also see the gratuity calculator and leave management in Zeba.
Got questions?
Formula, divisor, eligible leaves, and tax.
Zeba tracks earned leave, half days, comp-off, and LOP on one calendar - so the encashable balance is right on the day someone resigns.