As per labour law, every salaried employee is entitled to a minimum number of paid holidays. Employees do not have to use all their annual leave entitlements. Unused paid leaves can usually be carried forward by employers. When the employee retires or resigns, he or she will invariably have an unutilised leave balance. Unutilised paid leave must be compensated by the employer. Leave encashment is the term used to describe this concept. Encashment of accumulated leave during service and retirement or resignation encashment of accumulated leave during service. As part of ‘income from salary’, any leave encashed during service is […]