Runtime HRMS Docs
  • Introduction
  • Getting Started
    • Welcome
    • FAQs
    • Manage Subscription
      • Billing & Payments
      • Multiple Businesses
      • Users & Access
    • Addons
      • Travel Tracking
      • WhatsApp Addon
      • Custom Domain
      • Remote Punch Address
      • Project Management
      • Performance Management
      • Credits
      • Recruitment Plus
    • Setting Up
      • Business Information
      • Designations
      • Departments
      • Locations
  • Employee Management
    • Overview
    • Add New Employee
    • Import Employees
    • Employee Onboarding
    • Employee Information
    • Employee Work Profile
    • Employee Salary
    • Asset Management
    • Employee Separation
    • Exit Reasons
    • Information Verification
    • Workman Access
    • ESS Portal Access
  • Attendance & Leaves
    • Overview
    • Attendance Types
      • Remote Punch
      • Missed Punch
      • Gatekeeper Scan
      • QR Punch
      • Travel Punch
      • Excel Import
      • Manual Entry
    • Live Travel Tracking
    • Attendance Settings
    • Shift Policies
    • Shift Rules
    • Strike Rules
    • Week Off Policies
    • Monthly Attendance
    • Manual Attendance
    • Holidays
    • Weekly Offs
    • Comp Off
    • Leave Management
      • Leave Types
      • Leave Grant and Lapse
      • Leave Correction
      • Leave Encashment
      • Leave Request Approval
    • Overtime Rules
  • HR Management
    • Overview
    • HR Letters
    • HR Policies
    • Digital Notice Board
    • Automated Greetings
    • Workflows
  • Payroll & Compliances
    • Overview
    • Periods
    • Salary Components
    • Salary Deductions
    • Salary Structures
    • Claims & Reimbursements
    • Travel Reimbursement
    • Processing Payroll
    • Statutory Compliances
      • Provident Fund (PF)
      • Employees State Insurance (ESI)
      • Professional Tax
      • Income Tax
      • Income Tax Declarations
  • Reports
    • Overview
    • Salary Reports
      • Salary Summary
      • Salary Register
      • Salary Slips
      • Time Salary
      • Variable Salary
      • Cost To Company
      • Bank Transfer Letter
      • Salary Deductions
    • Employee Reports
      • Employee Register
      • Employee Joining
      • Employee Exit
      • Increment Ageing
      • Promotion Ageing
      • COVID-19 Vaccination
      • Employee Events
    • Attendance Reports
      • Leave Register
      • Attendance Register
      • Time Register
      • Travel Register
      • Time Strikes
      • Remote Punches
    • Statutory Reports
      • ESI Reports
      • PF Reports
      • Income Tax Reports
        • Income Tax Deduction
        • Income Tax Computation
        • Income Tax FORM-16
        • TDS Return (24Q)
  • Integrations
    • Overview
    • E-Mail Integration
    • Biometric Integration
    • WhatsApp Integration
    • CRM Integration
    • Payouts
      • Terms of Use
Powered by GitBook
On this page
  • Leave Encashment Options
  • Review Encashment Details
  • Manual Leave Encashment

Was this helpful?

  1. Attendance & Leaves
  2. Leave Management

Leave Encashment

Leave encashment allows you to pay salary to employees in lieu of leaves accumulated over a period of time.

PreviousLeave CorrectionNextLeave Request Approval

Last updated 7 months ago

Was this helpful?

To encash leaves, go to Payroll > Leave Encashment

Leave Encashment Options

On the above screen, make selections as explained below:

  • Location: Select the location for which you want to process the leave encashment. Leave ‘All Locations’ to process for all.

  • Cost Center: Select the cost center for which you want to process the leave encashment. Leave ‘All Cost Centers’ to process for all.

  • Department: Select the department for which you want to process the leave encashment. Leave ‘All Departments’ to process for all.

  • Employee: Select the employee if you want to process leave encashment for a single employee. Leave empty to process for all employees.

  • Balance As On: Select the period from which the balance of leaves should be considered to calculate encashment. This can be a past period also. For e.g., you can process encashment in month of March for balance of leaves as of last year’s December.

  • Balance Above: Enter no. of days here above which the balance should be encashed. For e.g., if balance of leaves as per ‘Balance As On’ period is 10, and ‘Balance Above’ is 2, the no. of leaves encashed will be 8.

  • Select Leave: Select leave which is to be encashed. Only those leave where Balance Tracking is enabled will appear here.

  • Select Components: Select the salary components which are to be encashed. For e.g., you may have ‘Basic’, ‘HRA’, ‘Conveyance’ etc. components. But while calculating encashment, you only want to consider ‘Basic’. In such case, select only ‘Basic’ from the list.

Once all selections are made, click on ‘Generate Summary‘. You will see a summary of encashment for employees who are eligible as per selected options:

If the calculations appear correct, click on Process to calculate leave encashment for each displayed record.

To change the selections, click on Change Options to go back to Encashment Options and make necessary changes.

Once you click on Process, the system will calculate leave encashment for each employee and update values for the currently active period.

Review Encashment Details

Encashment values are updated for each employee in same way as any other Variable Salary is captured. Go to Data Capture > Variable Salary

Select Leave Encashment in the component dropdown and click Load Employees.

Here, you can see the amount of encashment calculated by the Leave Encashment process. In case you want to delete the encashment for any particular employee, click on blue ‘List’ icon at end of the row. Another dialog will open to display details of the calculation and amount. Simply click on ‘Delete’ to remove the record.

To increase the encashment amount, enter the value in Amount column, enter your comments and click on green ‘Plus’ button to save

Manual Leave Encashment

You can also process leave encashment manually using Data Capture > Variable Salary. Here you can capture the amount to be paid to employees in the active period for as leave encashment.

Manual leave encashment does not deduct the leave balance from employee's leave account.

Leave Encashment
Leave Encashment Summary
Data Capture