Power Calculators

🌴 Leave Encashment on Retirement

Calculate leave encashment on retirement, using up to 300 days of EL and HPL.

By the Power Calculators team Updated

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Fill in the details and click Calculate to see your results.

This calculator is independent and unofficial — not affiliated with, endorsed by, or a representative of the Government of India or any government department. Figures are estimates for informational purposes; verify official figures before making decisions.

Formula at a glance

Leave Encashment (300 days) formula: EL amount = (Basic + DA) ÷ 30 × EL days; HPL amount = (Basic + DA) ÷ 60 × HPL days (within the 300-day cap)
How the leave encashment (300 days) works: EL amount = (Basic + DA) ÷ 30 × EL days

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  • Financial CalculatorEMI, SIP, PPF, NPS, post office schemes and government-employee calculatorsGet it on Google Play
  • Govt Employee CalculatorSalary, DA, pension and income tax for government employeesGet it on Google Play

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📘 About the Leave Encashment (300 days) Calculator

On retirement, a central government employee can encash unused leave up to a maximum of 300 days. Earned leave (EL) is paid at full rate and half-pay leave (HPL) at half rate.

Enter your basic pay, DA and leave balances to see the leave encashment amount.

🧮 Formula

Earned leave
EL amount = (Basic + DA) ÷ 30 × EL days
Half-pay leave
HPL amount = (Basic + DA) ÷ 60 × HPL days (within the 300-day cap)
At the cap
If EL is 300 days or more: (Basic + DA) ÷ 30 × 300

Where

  • The total leave encashed cannot exceed 300 days

✏️ Worked examples

₹56,100 basic, 58% DA, 240 EL + 100 HPL

You enter
Basic Pay at Retirement₹56,100
DA % at Retirement58%
Earned Leave (EL) Balance240 days
Half Pay Leave (HPL) Balance100 days
You get
Leave encashment amount₹7,97,742
Earned leave encashed240 days × ₹2,955 = ₹7,09,104
Half pay leave encashed60 days × ₹1,477 = ₹88,638
Total days counted300 of 300
TaxTax-free for central and state government employees

Encashment ₹7,97,742.

₹78,800 basic, 300 days EL

You enter
Basic Pay at Retirement₹78,800
DA % at Retirement58%
Earned Leave (EL) Balance300 days
Half Pay Leave (HPL) Balance0 days
You get
Leave encashment amount₹12,45,040
Earned leave encashed300 days × ₹4,150 = ₹12,45,040
Half pay leave encashed0 days × ₹2,075 = ₹0
Total days counted300 of 300
TaxTax-free for central and state government employees

Encashment ₹12,45,040.

🧭 How to use this calculator

What you enter

  • Basic Pay at Retirement (₹)
  • DA % at Retirement (%)
  • Earned Leave (EL) Balance (days)
  • Half Pay Leave (HPL) Balance (days)

What you get

  • Leave Encashment Amount

❓ Frequently asked questions

Is leave encashment on retirement taxable?

For central government employees it is exempt from income tax.

Why is HPL paid at half rate?

Half-pay leave is earned at half the rate, so it is encashed at half rate.

What is the maximum?

Encashment of leave is limited to 300 days.

What is the formula for leave encashment?

(Basic + DA) ÷ 30 × earned leave days, plus (basic + DA) ÷ 60 × half pay leave days, total up to 300 days.