Leave Encashment is the process where employees receive payment for unused accrued leave, either during employment or upon resignation/retirement, depending on company policy.
- What is leave encashment?
Answer: It is payment for unused accrued leave during or after employment. - When is it offered?
Answer: It is offered annually, at year-end, or upon leaving. - Is it taxable?
Answer: It may be taxable, depending on local laws and limits. - What are the benefits?
Answer: It provides financial flexibility and encourages leave use. - How does HR manage it?
Answer: HR tracks leave balances and processes payments.
