Leave Encashment Calculator
Updated July 2026
Estimate your leave encashment amount and the tax-exempt portion, based on your last drawn salary, leave days, and years of service.
Leave Encashment
Frequently Asked Questions
How is leave encashment calculated?
Encashment = (Basic + DA) ÷ 26 × Number of Leave Days encashed, using 26 as the standard working days in a month.
Is leave encashment fully tax-exempt?
For government employees, yes. For private-sector employees, exemption is the least of the actual amount, 10 months' average salary, ₹25,00,000 lifetime limit, or the cash equivalent for 30 days per year of service.
Is leave encashment during service taxable?
Yes — leave encashment received while still employed is fully taxable as salary income; the exemption above applies mainly to encashment on retirement or resignation.