compensation
Leave Encashment
Leave Encashment is the monetary compensation paid to employees for accumulated but unutilised leave, either during service or at the time of separation. In India, leave encashment received at retirement is exempt up to a specified limit under Section 10(10AA) of the Income Tax Act, while encashment during service is taxable. HR policies must define carry-forward rules and encashment limits per company policy.
Related Terms
workro’s HR platform bakes compliance terminology directly into your workflows. Generate offer letters, manage DPDP consent, and stay compliant—all with built-in HR intelligence.
Get started free →