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Tools · Employment

Leave encashment calculator

Work out the cash payout for your accrued, unused home and sick leave from your monthly basic salary and working days per month.

Home leave is capped at 90 accrued days and paid in full; sick leave is capped at 45 accrued days and typically paid at half rate. An indicative tool, computed entirely in your browser.

Leave & salary details

Rs

Use the basic salary only, not gross pay including allowances.

days

Used to work out the per-day rate. 26 is a common default; use your employer's figure if different.

days

Home (annual) leave days accumulated and unused. Encashable up to a maximum of 90 days.

days

Sick leave days accumulated and unused. Encashable up to a maximum of 45 days, and usually at a reduced rate.

%

Sick leave is commonly encashed at half rate (50%), unlike home leave which pays in full. Adjust this if your organisation's service rules use a different rate.

Note: leave encashment is typically settled at the end of service (resignation, termination or retirement). Some organisations also allow annual encashment of unused leave beyond the accrual cap, check your employer's service rules.

Total leave encashment

Rs 80,769

Rs 69,231 home leave + Rs 11,538 sick leave

Per-day rate

Rs 1,154

Home leave paid

60 days

Sick leave paid

20 days

Sick-leave rate

50%

Per-day rateRs 30,000 ÷ 26 days = Rs 1,154
Home-leave payout60 days × Rs 1,154 = Rs 69,231
Sick-leave payout20 days × Rs 1,154 × 50% = Rs 11,538
Total encashmentRs 80,769

An indicative estimate. Home leave is encashable up to 90 accrued days and sick leave up to 45 accrued days, in line with the Labour Act 2074 leave provisions; days accrued beyond these caps are not paid out. Sick leave is assumed encashed at half rate above, adjust the rate field if your organisation's service rules differ. Always confirm the exact figure with your employer's payroll or HR department.

How it works

From per-day rate to total payout

Leave encashment converts unused, accrued leave days into a cash payment based on your daily salary rate, subject to the accrual caps.

01

Per-day rate

Monthly basic salary ÷ working days per month (26 by default, editable to match your payroll calendar).

02

Home leave, capped at 90

Accrued home-leave days, up to 90, are paid at the full per-day rate. Days beyond 90 are not encashed.

03

Sick leave, capped at 45

Accrued sick-leave days, up to 45, are paid at a reduced rate (50% by default, editable) of the per-day rate.

Questions

Leave encashment, answered

How many leave days can be encashed?+

Home (annual) leave is encashable up to a maximum of 90 accrued days, and sick leave up to a maximum of 45 accrued days. Days accrued beyond these caps are not paid out in cash, though some organisations let you carry or use them for time off instead.

Why does sick leave pay out at half rate?+

It is a common convention, not a fixed legal rate, that sick leave is encashed at 50% of the per-day salary rate while home leave is paid in full. Some organisations use a different percentage, so the rate is editable above, check your employer's service rules for the exact figure.

When is leave encashment paid?+

Most commonly at the end of service, on resignation, termination or retirement, when unused accrued leave is settled as a lump sum along with final dues. Some organisations also allow employees to encash a portion of unused leave annually rather than waiting until they leave, this varies by employer.

How is the per-day rate worked out?+

Per-day rate = monthly basic salary ÷ working days per month. This calculator defaults to 26 working days a month, a common convention, but you can edit it to match your organisation's payroll calendar.

Is leave encashment based on basic salary or gross salary?+

It is based on basic salary only, not your full gross pay or CTC. Allowances such as housing, transport or dearness allowance are not included in the per-day rate used here.

Sources & data note

Based on the Labour Act 2074 leave provisions, home leave encashable up to 90 accrued days and sick leave up to 45 accrued days. The 50% sick-leave encashment rate is a common convention and may vary by employer. Figures here are indicative, verify the exact entitlement with your employer's payroll or HR department.