Leave Encashment Calculation is as follows for earned leaves there is no fixed rule as how much leaves can be carried forward every year or how many leaves can be encased. Most of establishments have their own rules. Usually the basic salary and dearness allowance is taken in consideration for calculation of the amount. Companies have their own policies for leave encashment in some of establishments leave encashment might not be available. The earned leave calculation is regulated as Factories Act 1948 and its State Rules OR if any organization wants to give more benefit to its employee than it would be calculated and paid as per organizational policy.
