Leave Encashment Calculator (EL & HPL)
Calculate your exact retirement leave encashment. Automatically combines Earned Leave (EL) and Half Pay Leave (HPL) up to the 300-day statutory limit.
1. Enter Pay & Leave Details
2. Encashment Breakdown
Frequently Asked Questions & Rules
How is Leave Encashment calculated on retirement?
Your encashment comprises Earned Leave (EL) and Half Pay Leave (HPL), up to a combined maximum of 300 days.
• EL Formula: (Basic Pay + DA) / 30 × EL Days.
• HPL Formula: (Half Basic Pay + DA on Half Basic Pay) / 30 × HPL Days.
Does Half Pay Leave (HPL) count toward the 300-day limit?
Yes. If your accumulated Earned Leave (EL) falls short of the 300-day maximum, the shortfall can be made up by encashing Half Pay Leave (HPL). However, HPL is encashed at half of your per-day leave salary. As per the 6th CPC rules (Rule 39), no pension deductions are made from HPL encashment for normal superannuation retirees.
What is the priority of encashment?
Earned Leave (EL) is always encashed first because it is paid at the full rate. If you have 300 days of EL, your entire encashment is paid at the full rate and HPL is not utilized. Any leave balance above the 300-day combined limit lapses.
Is leave encashment on retirement taxable?
Leave encashment received by a Central Government employee at the time of retirement is fully exempt from income tax under Section 10(10AA)(i) of the Income Tax Act, with no upper limit for government servants.