Free Calculator · India + UAE · Updated May 2026

Leave Encashment Calculator — India + UAE

Compute leave encashment on exit or year-end. India = per-day basic × accrued leave days. UAE = per-day basic × accrued leave per Labour Law. Free, instant.

Leave encashment converts accrued unused earned leave into a cash payment — either at year-end (if policy permits) or at separation. India: per-day basic × accrued leave days, governed by state shops-and-establishment acts and company policy. UAE: per-day basic × accrued leave days under the UAE Labour Law (30 calendar days per year accrual).

Result

Leave encashment payable

₹28,846

Per-day basic

₹1,154

Monthly basic₹30,000
Accrued leave days25
Divisor26

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Formula

  • Per-day basic = Monthly basic salary ÷ 26 (India) or ÷ 30 (UAE).
  • Leave encashment = Per-day basic × accrued unused leave days.
  • India tax exemption: salaried private-sector — up to Rs. 25 lakh lifetime cap (Finance Act 2023). Excess taxable.
  • UAE: leave salary on exit is fully payable; included in final settlement alongside gratuity.

Worked example

Indian employee with Rs. 30,000 monthly basic and 25 days accrued earned leave on exit: Per-day basic = 30,000 ÷ 26 ≈ Rs. 1,154. Encashment = 1,154 × 25 = Rs. 28,850 (within Rs. 25 lakh lifetime exemption). UAE employee with AED 6,000 basic and 18 accrued leave days: Per-day basic = 6,000 ÷ 30 = AED 200. Encashment = 200 × 18 = AED 3,600.

FAQ

Leave Encashment Calculator — common questions

Yes for earned leave (EL) under most state shops-and-establishment acts. Casual and sick leave typically lapse and are not encashed by default. Policy can be more generous than statute.
Government employees: fully exempt. Private-sector salaried: exempt up to Rs. 25 lakh lifetime cap (raised from Rs. 3 lakh in Finance Act 2023). Excess taxable as 'income from salary'.
Same formula and exemption pool. Year-end encashment is a policy choice; exit encashment is statutory for earned leave under most Indian states.
UAE Labour Law mandates 30 calendar days of paid annual leave after one year of service. Accrued unused leave is encashable on exit at per-day basic. Some contracts pay leave salary annually; others accrue to exit.
India: 26 (excludes Sundays in the working-day model). UAE: 30 (calendar-day basis under Labour Law). Confirm per company policy if it differs from the default.
Basic wage as defined in the employment contract — India typically includes Dearness Allowance for statutory calculations; UAE typically excludes allowances. Confirm against your contract.
The calculator uses the leave-days you input; ensure that figure is already net of any company carry-forward cap. WappBlaster Leave module enforces caps automatically and produces an audit-grade balance per employee.

Run these calculations every cycle, automatically

WappBlaster Payroll computes gratuity, PF, ESI, PT, TDS, HRA, OT and leave encashment for every employee per cycle — no spreadsheets, no formulas, no errors. Priced on the Attendance Suite tiers (from ₹2,100/year for 7 staff on attendance, plus per-user field options).

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