Earned Leave Encashment Calculator | Leave Encashment Formula, Calculation in Retirement

Leave Encashment Calculation in India – Act, Formula, Tax Exemption and Calculator

Leave encashment is one of the huge retirement benefits for the employees working in the Government and Private sector. While retirement, a lump sum amount will get on surrender of leave saved in his entire service.

In the private sector, there is no static calculation method for the encashment of the leave. But, in Government, there will be a formula for calculating the amount of leave encashment. The Central Government has notified the formula to calculate the encashment as per the suggestion of the 7th pay commission. The formula may change for the employees working under state governments.

EL and HPL Encashment Calculator for CG Employees
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Encashment for CG Employees

At the time regular retirement, as per the CCS (Leave) Rules Section 39 said, a Government employee is permitted to cash equivalent of leave salary for both Earned Leave (EL) and Half pay leave (HPL) credit on the date of retirement, condition to a maximum of 300 Days to encash.

Maximum of 300 Days Leave Allowed to Encash at the time of regular Retirement for Central Government employees

How to Calculate Leave Encashment

As per the encashment rules, a Central Govt employee can encash a total of 300 days Earned Leave (in case shortage of 300 days in EL, take HPL for balance) at the time retirement. The simple formula to calculate the lump sum amount of encashment…

7th CPC Leave Encashment Calculation

As per Rule 39 of the CCS(Leave) Rules, 1972, a Central Government servant is entitled to the cash equivalent of leave salary for both earned leave and half pay leave at his/her credit on the date of retirement, subject to a maximum of 300 days including the period of encashment allowed in the previous employment under the Central Government. In case a Government servant resigns or quits service, the maximum encashment of leave allowed is 150 days.

How is earned leave encashment calculated while retirement?

The amount of leave encashment will be calculated as follows:

For Earned Leave

[(Basic Salary + DA) / 30] x No of days

For Hal Pay Leave

[(Half Pay Leave Salary + DA) / 30] x No of days

7th CPC Recommendations on Encashment and Accumulation of Earned Leave – Click to read more

Earned leave settlement calculation Example: The Encashment Table of 300 days Earned Leave for the pay matrix level – 6 (4200 Grade Pay):

Hot Check: Expected DA from July 2020 Calculator (Updated April 2020 AICPIN)

Earned Leave Encashment Table for 300 Days
7^th CPC Pay Matrix Level -6 (GP4200)
Index	Basic Salary	17% DA	BP + DA	300 EL
1	35400	6018	41418	414180
2	36500	6205	42705	427050
3	37600	6392	43992	439920
4	38700	6579	45279	452790
5	39900	6783	46683	466830
6	41100	6987	48087	480870
7	42300	7191	49491	494910
8	43600	7412	51012	510120
9	44900	7633	52533	525330
10	46200	7854	54054	540540
11	47600	8092	55692	556920
12	49000	8330	57330	573300
13	50500	8585	59085	590850
14	52000	8840	60840	608400
15	53600	9112	62712	627120
16	55200	9384	64584	645840
17	56900	9673	66573	665730
18	58600	9962	68562	685620
19	60400	10268	70668	706680
20	62200	10574	72774	727740
21	64100	10897	74997	749970
22	66000	11220	77220	772200
23	68000	11560	79560	795600
24	70000	11900	81900	819000
25	72100	12257	84357	843570
26	74300	12631	86931	869310
27	76500	13005	89505	895050
28	78800	13396	92196	921960
29	81200	13804	95004	950040
30	83600	14212	97812	978120
31	86100	14637	100737	1007370
32	88700	15079	103779	1037790
33	91400	15538	106938	1069380
34	94100	15997	110097	1100970
35	96900	16473	113373	1133730
36	99800	16966	116766	1167660
37	102800	17476	120276	1202760
38	105900	18003	123903	1239030
39	109100	18547	127647	1276470
40	112400	19108	131508	1315080