Leave · India + UAE

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 payable

₹28,846

Per-day basic: ₹1,154

Monthly basic
₹30,000
Accrued leave days
25
Divisor
26

Indicative only. Statutory rates change; confirm against the current rules before acting on a figure.

How it works

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).

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.

Frequently asked questions

Is leave encashment on exit mandatory in India?

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.

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Is leave encashment taxable in India?

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'.

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What about year-end encashment vs exit encashment?

Same formula and exemption pool. Year-end encashment is a policy choice; exit encashment is statutory for earned leave under most Indian states.

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How does UAE leave salary differ?

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.

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Is the per-day divisor 26 or 30?

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.

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What counts as 'basic' for the calculation?

Basic wage as defined in the employment contract, India typically includes Dearness Allowance for statutory calculations; UAE typically excludes allowances. Confirm against your contract.

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Does this include leave carry-forward cap?

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.

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