Selling Leave Calculator

When employees do not use all of their entitled annual leave, many organizations allow them to sell unused leave days in exchange for cash compensation. A Selling Leave Calculator helps you quickly determine:

• How many leave days you can sell, and
• How much money you will get from selling them.

This tool is especially useful for HR departments, payroll managers, and employees who want to understand their leave encashment value.

Step 1: Calculate Leave Accrued

Leave is generally earned monthly based on your annual entitlement.

Formula:

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

Step 2: Calculate Current Balance Leave

Balance leave is what remains after deducting leave already taken.

Formula:

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

Step 3: Calculate Total Available Leave

If the company allows carry forward leave, then add it to the current balance.

Formula:

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

Step 4: Calculate Sellable Leave Days

Companies may limit the number of days you can sell. If no cap is mentioned, you can sell your total available leave.

Formula:

$\text{Sellable Leave Days}=\text{Total Available Leave}$

Step 5: Calculate Leave Encashment Value

The value of selling leave is determined by multiplying sellable leave days by your daily salary.

Formula:

$\text{Leave Encashment Value}=\text{Sellable Leave Days}\times \text{Daily Salary}$

Example Calculation

Let’s assume the following:

• Annual Leave Entitlement = 24 days
• Months Worked = 10 months
• Leave Taken = 6 days
• Carry Forward Leave = 4 days
• Daily Salary = $100

Step 1: Leave Accrued

$\text{Total Leave Accrued}=\frac{24}{12}\times 10=20\text{ days}$

Step 2: Current Balance Leave

$\text{Current Balance Leave}=20-6=14\text{ days}$​​​​​​​

Step 3: Total Available Leave

$\text{Total Available Leave}=14+4=18\text{ days}$​​​​​​​

Step 4: Sellable Leave Days

$\text{Sellable Leave Days}=18\text{ days}$

Step 5: Leave Encashment Value

$\text{Leave Encashment Value}=18\times 100=1800\text{ USD}$

​​​​​​​The employee can sell 18 days of leave and receive $1,800.