Leave Encashment Calculator
FAQs
Q1. What is a Leave Encashment Calculator?
A. A Leave Encashment Calculator helps employees determine the amount they will receive when encashing their unused earned leaves.
Q2. How is leave encashment calculated?
A. It is usually calculated using the formula:
(Basic Salary + Dearness Allowance) ÷ Total Working Days in a Month × Number of Earned Leave Days.
Q3. Is leave encashment taxable?
A. Yes. For private sector employees, leave encashment received during employment is taxable. Certain exemptions apply for government employees.
Q4. Can I use this calculator for retirement or resignation payouts?
A. Yes. The calculator can be used to estimate leave encashment in cases of retirement, resignation, or termination.
Q5. How many working days should I enter?
A. Typically, organizations use either 26 days (excluding Sundays) or 30 days per month for calculation purposes.