Leave Encashment Calculator
Calculate leave encashment payout from basic salary and leave balance
Unit: ₹
Unit: ₹
Unit: days
Daily Wage
₹2,167
Gross Encashment
₹97,500
Tax-Free Limit (Lifetime)
₹25,00,000
How this calculator works
Leave encashment calculator for Indian employees — gross payout, tax-exempt amount, and taxable surplus.
Quick tips
- •Private sector employees have a lifetime tax exemption of Rs 25 lakh under Section 10(10AA).
- •Government employees get 100% tax exemption on leave encashment at retirement.
- •Only earned/privilege leave is encashable — casual and sick leave are excluded.
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Leave Encashment Calculator
Use this leave encashment calculator to estimate your payout based on basic salary, dearness allowance, and accumulated leave balance at separation.
Formula: Leave Encashment = (Basic + DA) ÷ 30 × Leave Days
- Private sector employees have a lifetime tax exemption of Rs 25 lakh under Section 10(10AA).
- Government employees get 100% tax exemption on leave encashment at retirement.
- Only earned/privilege leave is encashable — casual and sick leave are excluded.
Frequently Asked Questions
Is leave encashment during service taxable?
Yes. Leave encashment received during active employment is fully taxable as salary income. The exemption under Section 10(10AA) applies only at retirement or resignation.
What is the maximum tax-free leave encashment?
For private sector employees, the lifetime tax-free limit is Rs 25 lakh cumulative across all employers.