Calculate your earned leave (EL) balance and encashment value based on days worked, EL credit rate, and monthly salary. Follows the standard Indian leave accrual rules.
Earned Leave Calculator
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Actual working days (not calendar days). Exclude holidays and leave days.
Factories Act: 1 EL per 20 days. Some state Shops Acts: 1 per 11 days.
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EL encashment is typically calculated on Basic + DA
Leave balance carried forward. Enter 0 if none.
Total EL Balance
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Encashment Value—
EL Earned This Year—
Carried Forward—
Per-Day Salary—
Credit Rate—
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* EL balance = Days Worked / Credit Rate + Existing Balance. Encashment = Balance x Per-Day Salary (Basic+DA / 26).
What is Earned Leave (EL)?
Earned Leave (also called Privilege Leave or Annual Leave) is paid leave that employees accumulate based on the number of days they work. Under the Factories Act, workers earn 1 day of leave for every 20 days worked. Under various state Shops and Establishments Acts, the rate is often more generous, such as 1 day per 11 days worked.
EL can be carried forward to the next year (subject to limits) and encashed at the time of resignation, retirement, or as per company policy. EL encashment is a significant component of full-and-final settlements.
EL is earned based on actual days worked, not calendar days
Factories Act: 1 EL per 20 days worked. State Shops Acts vary (commonly 1 per 11 days)
EL encashment at exit is calculated on Basic + DA using the 26-day per-day rate
Automate Leave Management with Attendo
Attendo tracks earned leave accrual, balances, carry-forward, and encashment automatically. Employees see real-time balances on the app.
An employee worked 240 days in the year with a Basic + DA of ₹25,000 per month. The EL credit rate is 1 per 20 days, and they have 10 days carried forward.
EL Earned: 240 / 20 = 12 days
Total Balance: 12 + 10 (carry forward) = 22 days
Per-Day Salary: ₹25,000 / 26 = ₹962
Encashment Value: 22 x ₹962 = ₹21,154
Why Earned Leave Matters
Employee right: EL is a statutory entitlement. Employers cannot deny earned leave accumulation for days worked
FnF settlement: Unused EL must be encashed during full-and-final settlement at resignation or termination
Tax benefit: EL encashment at retirement is tax-exempt up to ₹25 lakhs under Section 10(10AA). On resignation, the least of specified limits is exempt
Carry forward: Most companies and state laws allow EL to be carried forward, typically up to 30-45 days depending on the applicable law
Compliance: Not maintaining EL records or denying encashment is a violation of labour laws and can attract penalties
How to Use This Calculator
Step 1: Enter the total days you actually worked during the year (exclude holidays, leaves, and absences)
Step 2: Select the EL credit rate (1 per 20 for factories, 1 per 11 for shops, or enter a custom rate)
Step 3: Enter your monthly Basic + DA for encashment value calculation
Step 4: Enter any existing EL balance carried forward from the previous year
EL Credit Rates Across India
Factories Act: 1 EL per 20 days worked (for adults). 1 per 15 days for workers under 15 years
Maharashtra Shops Act: 1 EL per 20 days worked
Karnataka Shops Act: 1 EL per 20 days worked
Tamil Nadu Shops Act: 1 EL per 20 days worked
Delhi Shops Act: 1 EL per 20 days worked (15 EL per year)
Code on Social Security 2020: Proposes 1 EL per 20 days worked uniformly
Always check the specific state law applicable to your establishment. Some industries and sectors have different rules.
EL in Payroll and Compliance
Accrual tracking: EL must be accrued based on actual attendance. The leave management system should compute EL automatically from attendance data
Carry forward limits: Most laws cap EL carry-forward at 30-45 days. Excess must be encashed or forfeited as per policy
Encashment on exit: Unused EL must be paid at the per-day rate (Basic + DA / 26) in the full-and-final settlement
Leave register: Employers must maintain a leave register showing EL earned, taken, and balance for each employee
Attendo (formerly Petpooja Payroll) auto-accrues earned leave from attendance data, manages carry-forward limits, and computes EL encashment in full-and-final settlements for 30,000+ businesses.
FAQ
Frequently Asked Questions
Common questions about earned leave calculation.
How is earned leave calculated in India? +
EL is calculated as: Days Worked / Credit Rate. Under the Factories Act, the credit rate is 20 (1 EL per 20 days worked). If you worked 240 days, you earn 240/20 = 12 days of EL.
What is the difference between EL, CL, and SL? +
EL (Earned Leave) is accrued based on days worked and can be carried forward and encashed. CL (Casual Leave) is for short, unplanned absences and typically cannot be carried forward. SL (Sick Leave) is for illness, usually requires a medical certificate for extended periods.
Can earned leave be encashed? +
Yes. Unused EL can be encashed at resignation, retirement, or as per company policy (some companies allow annual encashment of excess EL). Encashment is calculated at per-day salary (Basic + DA / 26).
Is EL encashment taxable? +
At retirement: Exempt up to Rs 25 lakhs under Section 10(10AA). On resignation: The least of (a) cash equivalent of 30 days EL per year of service, (b) 10 months average salary, (c) Rs 25 lakhs, or (d) actual encashment is exempt.
How many EL days can be carried forward? +
It varies by state law and company policy. The Factories Act allows carry-forward up to 30 days. Many companies set their own limits (30-45 days). Excess days beyond the limit must be encashed or lapse.
Is EL earned during the probation period? +
Under the Factories Act, EL accrues for all workers regardless of probation status. However, many company policies restrict EL usage (not accrual) during probation. The leave is earned but may not be available to take until probation ends.
What happens to unused EL when an employee resigns? +
Unused EL must be encashed and paid as part of the full-and-final settlement. The encashment amount is calculated as EL balance x per-day salary (Basic + DA / 26). This is a legal obligation for employers.
How is EL different from privilege leave? +
They are the same. Earned Leave (EL) and Privilege Leave (PL) are interchangeable terms used in different states and companies. Both refer to paid leave earned based on days worked that can be carried forward and encashed.
Calculate your earned leave instantly.
Use the free Earned Leave Calculator above to see your EL balance and encashment value based on days worked and salary.
Disclaimer: This calculator provides estimated earned leave balance and encashment based on the inputs provided. Actual EL policies vary by state law and company rules. Attendo does not assume any legal liability for decisions made based on these calculations.
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