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Leave encashment calculator
At retirement, central government employees get cash for unused earned leave and half pay leave together, up to 300 days.
Fill in the form to see the result.
The rule
Rule 38 of the CCS (Leave) Rules 1972 allows cash equivalent of leave salary for earned leave and half pay leave at the credit of an employee on retirement, together limited to 300 days. For earned leave, the payment is (basic pay + DA on the date of retirement) ÷ 30 × days. For half pay leave, it is half pay plus DA on it, for the days needed to make up 300 together with earned leave.
Leave encashment at retirement is fully tax-free for central and state government employees. For other employees it is exempt up to ₹25 lakh. Read the leave encashment guide.
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Guides
- Pension commutation explainedSwap up to 40% of pension for a lump sum: formula and factor table
- Family pension for central government employeesNormal and enhanced rates, who gets it and how it is taxed
- Additional pension at age 80 and aboveExtra 20% to 100% of basic pension from age 80
- Leave encashment explainedHow unused earned leave turns into cash, and how it is taxed
- UPS vs NPS: how the two pension options compareAssured payout or market-linked corpus: a side-by-side comparison
- Old pension scheme vs NPSDefined-benefit pension against a market-linked corpus
Frequently asked questions
Is leave encashment taxable for government employees?
No. Leave encashment received at retirement by central or state government employees is fully exempt from income tax.
Can I encash leave during service?
Central government employees can encash 10 days of earned leave with LTC, up to 60 days in total over a career; those days are deducted from the 300-day limit at retirement.