Notice Period & Leave Encashment Calculator
Leaving a job usually involves money moving in both directions. Set the notice you did not serve against the leave you did not take.
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How it works
If you leave before serving your full notice, most contracts let the employer recover pay for the days short. Working against that, untaken leave is normally paid out at your daily rate.
The two are settled together in the final payment, so the figure that matters is the net. Depending on your leave balance and how much notice you skip, the settlement can land on either side.
Net = (leave days × daily rate) − (shortfall days × daily rate) + pending salary
- Daily rate — monthly salary ÷ days used for the calculation, usually 30
- Shortfall — required notice days less the days you actually serve
- Encashment — unused leave days paid out at the daily rate
Worked example
A 120,000 salary, 90 days’ notice with only 45 served, and 22 days of leave unused
Inputs
Results
A negative net means you pay the employer. Serving 22 more days would have been worth about 176,000 here — well worth negotiating over.
Frequently asked questions
Can my employer really recover notice pay?
Where the contract provides for it, generally yes — it is usually deducted from the final settlement. Whether it is enforceable beyond that depends on local employment law, and it is very often negotiable in practice.
Which salary is used for the recovery?
Contracts differ. Some use basic salary, others use gross. Basic produces a much smaller figure, so it is worth checking which one your agreement specifies before accepting a number.
Is leave encashment taxable?
Usually yes, and often at your ordinary income tax rate, though some jurisdictions exempt it on retirement. This calculator shows the gross amount before tax.
Is my data sent anywhere?
No. The calculation runs entirely in your browser. Nothing you type is transmitted to us or stored.
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