Leave Encashment Calculator
Work out how much money you receive when your unused earned leave is encashed by your employer.
Recent
Formula
How the calculation works
Enter your gross monthly salary and the number of unused earned leave days you are encashing.
The tool divides the monthly salary by 30 to find the daily wage, following the Bangladesh Labour Act practice of a 30-day month.
It multiplies that daily rate by the unused days to show the total encashment amount payable to you.
Common mistakes
- Using basic salary instead of gross monthly wage, because Labour Act encashment is normally calculated on the gross monthly wage.
- Forgetting that leave encashment is taxable income, so the amount shown is the gross figure before any tax deduction.
When to use it
- Use it at the end of a job to check the leave encashment your employer puts in your final settlement.
- Use it to decide how many leave days to carry forward once you know what each unused day is worth.
Worked example
With a monthly salary of Tk 30,000 and 20 unused leave days, the daily rate is Tk 1,000 and the encashment is Tk 20,000.
Common questions
Is leave encashment the same as gratuity?
No, encashment pays you for unused leave days, while gratuity is a separate benefit of 30 days' wages for each completed year of service.
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