Free Online Leave Encashment Calculator
Use this free Leave Encashment Calculator to estimate how much money you may receive for unused earned leave and how much may be tax-exempt or taxable in India.
The calculator supports common HR scenarios: resignation, retirement, in-service leave encashment, government employee treatment, death cases, employer payout caps, 26-day or 30-day salary basis, and private employee lifetime exemption limits.
Leave encashment can be payroll-specific and tax-sensitive. Use this as a planning estimate, then verify the final amount with HR, payroll, Form 16, and a qualified tax professional when needed.
Key Features
When to Use This Leave Encashment Calculator
How to Use the Leave Encashment Calculator
- 1. Enter monthly salary used by your employer for leave payout.
- 2. Add average salary for the last 10 months if it differs from current salary.
- 3. Enter leave balance, completed service years, salary day basis, and employer cap.
- 4. Choose employee type and encashment event.
- 5. Review estimated payout, exemption, taxable amount, and calculation breakup.
Leave Encashment Calculator FAQ
Is this Leave Encashment Calculator free?
Yes. The Leave Encashment Calculator is free and does not require login.
Which salary should I enter?
Enter the salary component used by your employer for leave encashment, commonly Basic plus Dearness Allowance. Some employers use a different payroll definition, so check your policy.
Is leave encashment fully tax-free?
Government employee leave encashment at retirement or resignation and death cases can be fully exempt. For private employees, exemption is subject to Section 10(10AA) limits and conditions.
What is the Rs 25 lakh limit?
For eligible non-government employees, the lifetime exemption cap for leave encashment was increased to Rs 25 lakh with effect from April 1, 2023. Previous exemptions reduce the remaining cap.
Is leave encashment during service taxable?
Leave encashment during service is generally taxable as salary. Confirm the final tax treatment with payroll or a tax professional.