On a monthly basic plus dearness allowance of ₹60,000, one day of unused leave is worth ₹2,308, using the standard one-day wage on a 26-day month. The table shows the payout for common leave balances.
| Unused leave | Encashment amount |
|---|---|
| 10 days | ₹23,077 |
| 15 days | ₹34,615 |
| 20 days | ₹46,154 |
| 30 days | ₹69,231 |
| 45 days | ₹1,03,846 |
| 60 days | ₹1,38,462 |
Leave encashment converts unused earned leave into cash, usually at the time of exit or an annual encashment window. The common method takes the last-drawn basic plus dearness allowance, divides by 26 to get a one-day wage, and multiplies by the number of days encashed. On ₹60,000 basic that is ₹2,308 a day, so 15 days encash to ₹34,615 and 45 days to ₹1,03,846.
Only earned or privilege leave is usually encashable; casual and sick leave typically lapse. Encashment during service is fully taxable, while encashment at retirement carries an exemption for non-government employees up to a specified limit. For your exact balance and rate, and to see it inside a full exit settlement, use the salary calculator and read the leave encashment and full and final settlement guides.
How the balance builds matters as much as the rate. Earned leave usually accrues at a fixed number of days for every month or set of days worked, and many policies cap how much can carry forward, so unused leave beyond the cap lapses rather than encashing. On ₹60,000 basic, each day you let lapse instead of encashing is ₹2,308 left on the table, which is why checking your leave balance before a cap resets, or before you exit, is worth the few minutes it takes.
The tax treatment turns on timing. Encashment taken while you are still employed is added to salary and taxed in full at your slab. Encashment at retirement or final exit is treated more favourably for non-government employees, with an exemption up to a specified overall limit, and the balance taxed. Because the same ₹69,231 for 30 days can be taxed differently depending on when you take it, it is worth planning encashment around your exit rather than drawing it ad hoc during service.