Calculate your Earned Leave / Privilege Leave (PL/EL) encashment payout instantly. Compute your daily rate based on Annual CTC, Basic + DA, or Monthly Gross salary and leave days.
Enter your salary and leave days on the left to compute your exact leave encashment payout, daily wage rate, and tax insights.
Effective Budget 2023, the maximum tax exemption limit for non-government employees on retirement/resignation is ₹25,00,000 (increased from ₹3 Lakhs). Any amount above this limit is taxable under Salary.
Central & State Government employees enjoy 100% tax exemption on leave encashment received at retirement/superannuation — no upper limit applies.
PL / EL Encashment is strictly computed on Basic Salary + DA (or Monthly Gross if allowed by company policy). Allowances like HRA, LTA, and special allowances are excluded under standard labor rules.
Leave encashed while still employed (e.g., annual PL encashment) is fully taxable for all employees. The Sec 10(10AA) exemption applies only at the time of resignation or retirement (full & final settlement).
Input your annual salary (CTC) and select whether your company computes leave encashment on Basic + DA or Monthly Gross.
Specify the number of unused Privilege Leave (PL) or Earned Leave (EL) days available for encashment.
Choose your company's monthly divisor (26 working days standard or 30 calendar days).
Instantly view your gross PL encashment payout and Section 10(10AA) tax exemption recommendations.
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