Our system's leave encashment formula is based on MOM's guidelines, which you may refer to this link for more information.
To view the current pay scheme of the employee, you can navigate to Employees > All Employees > View Employee > Employment Details > Edit Current Pay Scheme
For employees on Monthly Pay, the formula depends on the number of average workdays per month indicated in the employee's pay scheme.
Leave Encashment Formula
The employee works a 5 day work week in the above pay scheme and earns $2,500/month.
In this case, since he works 5 days a week on average and there are 52 weeks in a year, the total number of his working days is 5 days x 52 weeks = 260 days.
To calculate the gross rate of pay per day based on a $2,500/monthly salary,
the yearly pay will be $2,500 x 12months = $30,000
If this employee has 10 days of leave left, the encashment formula would be:
$30,000/260days x 10 days = $1,153.85
Workdays per year
Gross Salary ($) per year
Annual Leave Left
Encashment Formula ($)
$30,000/260 x 10 days = $1,153.85
Feel free to contact us if you face any difficulties through the support chat icon on the bottom right of the screen or email email@example.com. We will get back to you within 3 working days.