Leave Encashment Calculator for Government Employees
Calculate your leave encashment as per government leave rules
Enter Leave Encashment Details
Leave Encashment Rules for Government Employees
This calculator helps government employees estimate their leave encashment benefits for earned leave at retirement.
What is Leave Encashment?
Leave encashment is the payment received for accumulated earned leave (EL) that an employee has not utilized, typically paid at retirement or resignation.
Calculation Formula
Encashment = (Basic Pay + Dearness Allowance) × Number of Leaves / 30, capped at 300 leaves for central government employees.
Maximum Leave Limit
- Maximum 300 earned leaves can be encashed at retirement for central government employees.
- For state government employees, the limit may be different, often 180 days.
Tax Exemption
For government employees, leave encashment at retirement is fully exempt from income tax under Section 10(10AA)(i) of the Income Tax Act, 1961. If encashed during service, it is taxable.
How to Use This Calculator
- Enter your last drawn monthly basic pay.
- Input the current Dearness Allowance rate.
- Enter the number of accumulated earned leaves (up to 300 for central government).
- Select your type of government service.
- Click "Calculate Leave Encashment".
Frequently Asked Questions
Who is eligible for leave encashment?
Government employees with accumulated earned leaves are eligible, typically at retirement.
Is leave encashment taxable?
No, leave encashment at retirement is fully exempt from tax for government employees. If encashed during service, it is taxable.
What is the maximum leave limit?
Up to 300 earned leaves can be encashed at retirement for central government employees. For state governments, it may be different.
Where can I find official rules?
Refer to DoPT - Central Civil Services (Leave) Rules, 1972 and Pensioners' Portal.
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