Cash out your unused earned leave — the standard Indian formula is (Basic + DA) ÷ 30 × unused days, capped at ₹25 lakh tax exemption.
All figures in the local currency. This tool does not compute how many days you have accrued — enter the balance from your payslip/HR record.
| Service | Entitlement |
|---|---|
| Formula | (Basic salary + Dearness Allowance) ÷ 30 × unused earned-leave days |
| Entitlement (Factories Act, factory workers) | 1 day earned leave per 20 days worked, after 240 days worked in a year |
| Entitlement (other sectors) | Varies by state Shops & Establishments Act — check your state and company policy |
| Tax exemption (non-government employees) | Up to ₹25,00,000 lifetime aggregate, under Section 10(10AA) |
Some employers use a divisor of 26 instead of 30 — check your company policy. The exact ENTITLEMENT rate (how many days you earn per year) varies by sector and state; this tool encashes the balance you already know you are owed, from your payslip or HR record. Cross-checked against HROne. Source: ClearTax.
(Basic salary + Dearness Allowance) ÷ 30 × the number of unused earned-leave days — though some companies use a divisor of 26 instead, so check your payslip or HR policy.
At retirement/resignation for non-government employees, it is exempt up to ₹25,00,000 (a lifetime aggregate limit across employers) under Section 10(10AA); for government employees it is fully tax-free. Leave encashed while still employed is fully taxable.
This varies by sector and state — factory workers under the Factories Act 1948 earn roughly 1 day per 20 days worked (after 240 days worked in a year); other sectors follow their state's Shops & Establishments Act, which differs across states. Check your payslip or HR policy for your actual balance.
No — see our India Gratuity Calculator for that separate, service-length-based benefit. Leave encashment pays out unused vacation days specifically.