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A leave encashment request asks HR to pay the employee for unused earned or privilege leave instead of the employee taking it as time off. It may be made annually where the policy allows encashment during service, or at resignation or retirement as part of final settlement.
REQUEST FOR LEAVE ENCASHMENT
To,
The HR / Payroll Department
[Company Name]
[Company Address]
Dear Sir / Madam,
As per my leave records, my earned / privilege leave balance as on [DD/MM/YYYY] is [Number] days. I request encashment of [Number] days under the company leave encashment policy.
| Occasion | [ ] Annual encashment during service [ ] At resignation – last working day [Last Working Day] [ ] At retirement / end of contract |
|---|---|
| Balance to be retained after encashment (if required by policy) | [Number] days |
I request that the amount be paid along with my [salary for Month, Year / full and final settlement]. Kindly share the calculation, including the salary components used and any tax deducted at source.
Payment to: [ ] My salary account on record [ ] Bank details below (for exit cases where the salary account has changed)
| Account holder name | |
|---|---|
| Bank name and branch | |
| Account number | |
| IFSC code |
Enclosure: Leave balance statement dated [Date]
Thank you.
Yours faithfully,
| Eligible days for encashment | [Number] |
|---|---|
| Days approved | [Number] |
| Forwarded for approval on | [Date] |
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Address HR, state your earned leave balance, the number of days you want to encash under the policy, whether it is during service or at exit, and request payment with your salary or settlement.
Usually only earned or privilege leave. Casual and sick leave are generally not encashable unless the company policy specifically allows it.
Leave encashment during service is generally taxable as salary, while encashment at retirement or resignation may get exemption within limits. Check current tax rules with your payroll or tax adviser.