Loading...
Calculate encashment value of unused leave days at resignation or retirement.
Under Section 10(10A), up to ₹3.25L is exempt on separation
Gross Leave Encashment
Net Amount (After Tax)
Tax Exempt Amount
Taxable Amount
Estimated Tax
Leave encashment is a significant financial benefit in Indian employment that represents the monetary value of unused paid leave days when you resign, retire, or are retrenched. This is a legal right under the Factories Act and various state labor laws. The calculation involves determining your daily wage (monthly salary divided by 30) and multiplying it by the number of unused days. Crucially, Indian tax law under Section 10(10A) provides a tax exemption on up to 3.25 lakhs of leave encashment upon separation from employment, making this a potentially substantial tax-free payment. However, the tax treatment varies depending on whether you're separating from the company (tax-exempt) or simply encashing leave while employed (fully taxable). Understanding leave encashment is essential when planning your exit from a company, negotiating severance, or calculating your total benefits package.
Upload your contract and get a clause-by-clause risk analysis verified against Indian law. Free — no signup needed.
Explore more calculators and tools to help with your financial decisions.
Know your real take-home from CTC with PF, tax, and deductions calculated instantly.
Calculate net take-home salary after PF, income tax, and all deductions.
Calculate buyout cost to waive notice period and leave a job immediately.
This calculator is provided for informational and educational purposes only. While we strive for accuracy, results should be verified with official sources or by consulting qualified professionals. Tax laws, rates, and regulations are subject to change. GotRedFlags is not responsible for financial decisions made based on these tools.