Leave encashment (calculating unused leaves for resigned employees) is not automatically calculated in Talenox.

To calculate leave encashment, you will need to manually calculate the amount and add in as an itemised "Leave Pay" under the Ad Hoc Payment/Deduction tab in when processing payroll:

Below are the formulas that you should use for your calculations:

Working Days

  • Formula: (Monthly Gross rate of pay** x 12 months) / (52 weeks x number of working days each week) x No. of leave days left to encash

Calendar Days:

  • Formula: (Monthly Gross rate of pay** x 12 months) / (52 weeks x 7 days) x number of leave days left to encash

**NOTE: Do ensure that your calculations of Gross rate of pay includes allowances that an employee is entitled to under a contract of service. (MOM)

However, MOM also recommends that allowances to be excluded from Gross rate of pay calculations are as follow:

  • Travel allowances
  • Food allowances
  • Housing allowances

Now, you'll be able to encash leave like a pro 👍

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