Leave Encashment Calculator
Rule verification pending: The leave-encashment entry in our rates file is still marked verified: false. Until it has been matched to the applicable primary government order, use this only as a planning estimate. Confirm your eligibility and amount with PAO/CDA.
Estimate the cash value of eligible leave at retirement. Use the eligible monthly leave-salary amount confirmed by your pay statement or PAO/CDA—not total gross salary. The calculator adds the applicable DA and shows every step.
Calculator
Inputs stay in this browser and are not recorded.
Formula
Check before relying on itThe 300-day ceiling and formula are implemented, but the exact eligible balance and salary components depend on the service leave account and the retirement order. Confirm the final figure with PAO/CDA.
What leave encashment is
On retirement you are paid the cash equivalent of the earned leave left in your leave account, up to a maximum of 300 days. It is a one-time payment. The daily rate is your monthly leave salary plus the Dearness Allowance of the day, divided by 30.
What counts as leave salary
Which pay components count towards leave salary depends on the service leave rules and how PAO/CDA applies them to your case — basic pay and DA always, with MSP and some other elements admissible in many cases. Rather than guess the components, this calculator asks you to enter the eligible monthly leave-salary figure your pay statement or PAO/CDA uses, and works from that.
Frequently asked questions
What is the maximum?
300 days of earned leave. Any balance above that is not encashed on retirement.
Is it taxed?
No. For central government employees, including the defence services, leave encashment received on retirement is fully exempt from income tax under Section 10(10AA)(i) of the Income-tax Act, 1961.
Does Dearness Allowance count?
Yes — the DA percentage applicable on the date of retirement is added to the monthly leave salary before the daily rate is worked out.
What about encashment during service or with LTC?
That runs on separate rules and lower limits and is not what this page estimates. This is the one-time payment at retirement.
Why might my figure differ from the office's?
The exact eligible leave balance and the admissible salary components are fixed by your service leave account and the retirement order. This is an estimate to check against those, not the final calculation.
Sources, and what is not yet pinned
- The 300-day ceiling and the (leave salary + DA) ÷ 30 × days formula are implemented as held in rates.json.
- Not yet pinned to a single circular: the exact list of pay elements that count as leave salary for armed forces personnel. The rates file marks this entry unverified for that reason, and the calculator asks for the eligible figure directly instead of assuming it. Confirm the final amount with PAO/CDA.
- Income-tax exemption — Section 10(10AA)(i) of the Income-tax Act, 1961.
This is general information, not a benefits sanction or tax advice. The eligible leave balance and the final amount are fixed by your service leave account and PAO/CDA. Sainik Desk is a private website, not a government one.