Paid Leave Calculator

Paid leave is an important part of any employee’s benefits package. It ensures that employees can take time off while still being compensated. A Paid Leave Calculator helps employees quickly estimate how many paid leave days they have earned, how much they have used, and how much balance they still hold.

This tool is also useful for HR managers, payroll teams, and employees who want to track their leave entitlement, usage, and encashment value.

Formula for Paid Leave Calculation

Step 1: Pro-Rata Leave Accrual

If the employee has not completed a full year, leave entitlement is calculated based on months worked.

$\text{Leave Accrued}=\frac{\text{Annual Leave Entitlement}}{12}\times \text{Months Worked}$

Step 2: Current Balance Leave

After subtracting the number of days already taken, we can calculate the balance.

$\text{Balance Leave}=\text{Leave Accrued}-\text{Leave Taken}$

Step 3: Total Available Paid Leave

If carry forward leave is allowed, then total available leave is:

$\text{Total Available Leave}=\text{Balance Leave}+\text{Carry Forward Leave}$

Step 4: Encashment Value (Optional)

If daily salary is provided, then the monetary value of paid leave can also be calculated.

$\text{Encashment Value}=\text{Total Available Leave}\times \text{Daily Salary}$

Example of Paid Leave Calculation

Let’s take an example of an employee:

• Annual Paid Leave Entitlement = 24 days
• Months Worked = 9 months
• Leave Taken = 5 days
• Carry Forward Leave = 3 days
• Daily Salary = $100

Step 1: Pro-Rata Leave Accrued

$\text{Leave Accrued}=\frac{24}{12}\times 9=18\text{ days}$​​​​​​​

Step 2: Current Balance Leave

$\text{Balance Leave}=18-5=13\text{ days}$

Step 3: Total Available Paid Leave

$\text{Total Available Leave}=13+3=16\text{ days}$

Step 4: Encashment Value

$\text{Encashment Value}=16\times 100=1600\text{ USD}$

Final Result:

• Total Leave Accrued = 18 days
• Balance Leave = 13 days
• Total Available Paid Leave = 16 days
• Encashment Value = $1600