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Privilege Leave (PL) Encashment Calculator

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.

Instant Calculation 100% Free & Private No Sign-up Needed Meaningful Insights
Privilege Leave (PL) Encashment Calculator
Please enter a valid annual salary.
%
Please enter a valid basic monthly salary.
%
Standard: 30 days for calendar month, or 26 days for standard working days.
Please enter valid PL days available.
Summary & Payout

Ready to Calculate

Enter your salary and leave days on the left to compute your exact leave encashment payout, daily wage rate, and tax insights.

Daily Wage Rate: Monthly Base ÷ Divisor
Gross Payout: Daily Rate × Available Leave Days
Tax Exemption: Up to ₹25 Lakhs u/s 10(10AA)
Fill details and click Calculate PL Encashment

PL Encashment — Key Recommendations & Tax Insights

Section 10(10AA) Exemption Limit

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.

Government Employees

Central & State Government employees enjoy 100% tax exemption on leave encashment received at retirement/superannuation — no upper limit applies.

Calculation Base

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.

Encashment During Active Service

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).

How PL Encashment Calculation Works

Step 1: Enter Annual CTC & Base

Input your annual salary (CTC) and select whether your company computes leave encashment on Basic + DA or Monthly Gross.

Step 2: Input PL Days

Specify the number of unused Privilege Leave (PL) or Earned Leave (EL) days available for encashment.

Step 3: Select Divisor

Choose your company's monthly divisor (26 working days standard or 30 calendar days).

Step 4: Review Payout & Insights

Instantly view your gross PL encashment payout and Section 10(10AA) tax exemption recommendations.

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