Earned or privilege leave turned into rupees at your basic pay and DA
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 23 Oct 2026.Earned leave encashment of 300 days at ₹60,000 a month basic plus DA is ₹6,00,000, paid at one thirtieth of a month for each day. Leaving a private job after 12 years, all of it is tax-free. Enter your own pay, leave balance and service to see your figures.
| Days of leave | Paid on 30 days a month | Paid on 26 days a month |
|---|---|---|
| 15 | ₹30,000 | ₹34,615 |
| 30 | ₹60,000 | ₹69,231 |
| 60 | ₹1,20,000 | ₹1,38,462 |
| 90 | ₹1,80,000 | ₹2,07,692 |
| 120 | ₹2,40,000 | ₹2,76,923 |
| 180 | ₹3,60,000 | ₹4,15,385 |
| 240 | ₹4,80,000 | ₹5,53,846 |
| 300 | ₹6,00,000 | ₹6,92,308 |
Payout = 300 days × ₹60,000 ÷ 30. Lifetime tax-free limit ₹25,00,000 for non-government employees, in force from 1 Apr 2023.
Estimates for information only, not tax advice.
| The exemption is the least of | Amount | Binding? |
|---|---|---|
| the amount you actually received | ₹6,00,000 | Yes, this one caps it |
| the ₹25 lakh lifetime limit | ₹25,00,000 | – |
| 10 months of average salary | ₹6,00,000 | – |
| leave counted at 30 days for each completed year | ₹6,00,000 | – |
| Exempt | ₹6,00,000 |
Rates and rules read from the sources listed on this page (the earliest on 23 Oct 2026); they may have changed since.
Set your Unused earned leave; the page opens on 300 days.
Set the Basic pay + DA a month from your payslip.
Choose the days your employer divides a month by, as your leave policy states.
Read the Leave encashment paid and the Leave counted for tax.
Unused earned leave is paid out when most people leave a job, and two separate questions follow: how much, and how much of it survives tax.
The payout is the simpler one. Employers work it out as leave days × (basic pay + dearness allowance) ÷ 30, so 120 days at ₹60,000 a month is ₹2,40,000. Some employers divide by 26 working days instead, which pays more; the divisor is a choice here because your payslip is what it is, not what a formula says it should be.
Tax is where this gets sharp, and it splits three ways. A government employee's leave encashment on retirement is exempt in full. Anybody encashing leave while still employed pays tax on all of it, whoever the employer is — this is the part most people get wrong. For everyone else, leaving a private job, the exempt amount is the least of four figures: the amount actually received; ₹25,00,000 reduced by any exemption already claimed in an earlier year; ten months of average salary; and the cash value of leave counted at no more than 30 days for each completed year of service. The calculator shows all four and names which one did the capping, because "₹3,00,000 is taxable" is useless without knowing why.
The rest of the article, and all 7 questions about Leave Encashment Calculator, are on the Leave Encashment Calculator page.
Leave encashment = number of unused earned leave days × (monthly basic pay + dearness allowance) ÷ 30. For 120 days at ₹60,000 a month that is ₹2,40,000. Some employers divide by 26 working days instead of 30, which pays about 15% more, so check which your company uses.
No. Section 10(10AA)(ii) covers earned leave at credit at the time of leaving, "whether on superannuation or otherwise", so resignation is covered on the same terms as retirement. What changes the answer is encashing leave while still employed, which is taxed in full.
Basic pay plus dearness allowance, averaged over the last ten months for the tax calculation. House rent allowance, conveyance, bonus and other allowances are left out. Enter that average here rather than your gross salary, or the exemption will come out larger than the law allows.
Leave encashment ka paisa kaise milta hai has a short answer: the employer pays it with the full and final settlement after your last working day, along with any gratuity and pending salary. Enter your leave balance and basic pay above to see the amount and the part of it that is tax free.
Rates and rules change; check the source before you rely on a figure.
Still stuck? Ask about Leave Encashment Calculator and anybody who knows can answer. No account needed.
Same job, other tools: Last Working Day Calculator – The exact date your notice ends, counted in calendar days · Years Left to Retirement – How long is left before you retire, in years, months and days.
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