# How is leave encashment Exemption calculated?

**URL:** <https://community.greythr.com/t/how-is-leave-encashment-exemption-calculated/13698>\
**Category:** General Discussions\
**Tags:** leave-encashment\
**Created:** [July 8, 2024, 4:24am UTC](https://community.greythr.com/t/how-is-leave-encashment-exemption-calculated/13698 "2024-07-08T04:24:16Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![Pradeep.B.V](https://avatars.discourse-cdn.com/v4/letter/p/f05b48/32.png) [@Pradeep.B.V](https://community.greythr.com/u/Pradeep.B.V)\
**Post date:** [July 8, 2024, 4:24am UTC](https://community.greythr.com/t/how-is-leave-encashment-exemption-calculated/13698/1 "2024-07-08T04:24:16Z")

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Leave encashment received by govt employees is tax-free. leave encashment received by private employees are a minimum of the following:

1. Amount received as leave encashment
2. The maximum amount stated by the government, i.e., 25,00,000
3. last 10 months of basic salary and DA
4. Salary per day\*unutilized leave (consider a maximum of 30 days leave per year) for every year of completed service