# Leave Encashment 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 ***Proces*****s** 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. {% hint style="info" %} Manual leave encashment ***does not*** deduct the leave balance from employee's leave account. {% endhint %} --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.runtimehrms.com/attendance-and-leaves/leave-management/leave-encashment.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.