Leave encashment calculator
Leave encashment is the unused leave days you're allowed to cash in, times a daily rate. The daily rate is the monthly pay figure your policy names, divided by its divisor. Twelve unused days with a 10-day ceiling, on 5,200 a month over 26 days, comes to 2,000 gross.
Fill in every field to see the result.
How to use it
Step 1
Enter the unused leave days at the point of payout.
Step 2
Enter the most days your policy lets a person encash, or 0 if there's no ceiling.
Step 3
Enter the monthly pay figure your policy uses, often basic pay, and its divisor: the number of days that month is split over, such as 26 or 30.
Step 4
Read the daily rate and the gross amount. The result is gross, before any deduction, and carries no currency, so it reads in yours.
Questions people ask
How is leave encashment calculated?
Multiply the days you can encash by a daily rate. The daily rate is a monthly pay figure divided by a fixed number of days. Your leave policy or contract names both the pay figure and the divisor, so take them from there.
Which divisor should I use, 26 or 30?
Use the one your policy names. A 26-day divisor counts the working days in a six-day week, and a 30-day divisor counts calendar days. The same 5,200 monthly figure gives a daily rate of 200 over 26 days and about 173.33 over 30.
What happens to leave days over the encashment ceiling?
Your policy decides. Some carry them into next year, some let them lapse, and some pay them out only when a person leaves. The calculator lists the days over the ceiling on their own line, and PeopleMuster keeps each leave type's yearly quota and usage in one record, so you're working from the right starting count.