Posting Leave Encashment Days for Payroll Proccessing
Leave encashment refers to the amount of money received in exchange for a period of leave not availed by an employee. Encashment of accumulated leave can be availed by an employee at the time of retirement or leaving the job and also during the leave year-end process based on your company’s leave year-end policy. Any leave encashed during service is fully taxable and forms a part of income from Salary. Since there is no uniformity in laws across India as far as leaves are concerned, employers stipulate their policy on leaves to suit their Industry culture and applicable laws.