{"id":4832,"date":"2026-05-30T02:00:39","date_gmt":"2026-05-30T02:00:39","guid":{"rendered":"https:\/\/aaxonix.com\/resources\/?post_type=glossary&#038;p=4832"},"modified":"2026-05-30T02:00:39","modified_gmt":"2026-05-30T02:00:39","slug":"leave-encashment-people","status":"publish","type":"glossary","link":"https:\/\/aaxonix.com\/resources\/glossary\/leave-encashment-people\/","title":{"rendered":"Leave Encashment"},"content":{"rendered":"<h2>What is Leave Encashment in Zoho People?<\/h2>\n<p>Leave Encashment converts unused leave balance into a cash payment. The amount is calculated as: (Basic Salary \/ Number of Working Days) x Number of Leave Days Encashed. In India, earned leave encashment at separation is largely tax-exempt for government employees and subject to a tax exemption limit for private-sector employees under the Income Tax Act.<\/p>\n<h2>When encashment occurs<\/h2>\n<ul>\n<li><strong>At year-end:<\/strong> Some organisations allow employees to encash a portion of their accumulated earned leave annually, subject to a minimum retention requirement (e.g., must retain at least 15 days after encashment).<\/li>\n<li><strong>At resignation or retirement:<\/strong> The remaining earned leave balance is encashed as part of the full and final settlement.<\/li>\n<\/ul>\n<h2>Processing in Zoho People and Payroll<\/h2>\n<p>When Zoho People is integrated with Zoho Payroll, the leave encashment amount is automatically calculated from the leave balance and included in the final payslip or the year-end payroll run without manual computation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Leave Encashment in Zoho People is the payment of monetary compensation to an employee for unused earned leave days \u2014 either at year-end as part of a leave encashment policy, or upon resignation or retirement as part of the final settlement.<\/p>\n","protected":false},"template":"","meta":{"seo_title":"Leave Encashment | Zoho Glossary | Aaxonix","seo_description":"Leave Encashment in Zoho People is the payment of monetary compensation to an employee for unused earned leave days \u2014 either at year-end as part of a leave","seo_keyword":"leave encashment zoho people payment settlement","seo_faqs":"","term_type":"","glossary_related":"","glossary_links":""},"glossary_category":[1251],"class_list":["post-4832","glossary","type-glossary","status-publish","hentry","glossary_category-zoho-people"],"_links":{"self":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary\/4832","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/types\/glossary"}],"wp:attachment":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/media?parent=4832"}],"wp:term":[{"taxonomy":"glossary_category","embeddable":true,"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary_category?post=4832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}