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Compliance18 December 2025

Leave encashment on exit: the calculation nobody agrees on

Basic pay, dearness allowance, or both? A state-by-state look at what actually goes into the leave encashment number — and where companies get it wrong.

Leave encashment on exit: the calculation nobody agrees on

Basic pay, dearness allowance, or both? A state-by-state look at what actually goes into the leave encashment number — and where companies get it wrong.