Leave Encashment Estimate
Estimate the gross payout using your employer policy inputs. SalaryPath does not invent a universal leave-encashment formula.
SalaryPath intentionally withholds an exemption/tax result until that module is independently verified.
How this calculator works
What it does
Leave encashment is highly policy-dependent, so this estimator does not pretend that one universal India-wide formula applies to every employer. It lets the user enter the salary basis, unused leave days and divisor stated in the relevant employment or leave policy.
Calculation
The estimate uses the entered encashment salary basis × unused eligible leave days ÷ the entered divisor. The calculator keeps those inputs visible because employers can define the salary base and day divisor differently.
Example
If an employer policy values leave using ₹60,000 monthly salary, 12 eligible unused days and a divisor of 30, the gross estimate is ₹24,000. Using a different salary basis or divisor changes the result immediately.
Before relying on it
Eligibility, maximum carry-forward, which leave categories can be encashed, tax treatment and the salary components included can differ by employer and circumstance. Use the employer policy as the source of truth for the inputs.
Useful for
- Estimate an exit leave payout
- Check an employer settlement line
- Test the effect of a different policy divisor