What is the standard formula for leave encashment used by other organizations?

At Keka HR, while we do not provide consultancy services, we can offer some basic information about commonly used leave encashment formulas. The most frequently applied formulas are either based on the basic salary (Basic/365) or the gross salary (Gross/365). These formulas calculate the encashment amount by dividing the annual basic or gross salary by 365 days to determine the daily rate, which is then multiplied by the number of days to be encashed. However, for more specific guidance or to tailor the formula to your organization's unique requirements, we recommend consulting with a qualified HR consultant. They can provide expert advice that aligns with legal standards and best suits your organizational structure and policies.