Untaken-Leave Termination Payout Calculator
Calculate the encashment value of accrued-but-untaken annual leave when employment ends — with the daily-rate and accrual convention your contract or local labour code uses.
What this module does
When an employment relationship ends, the employer usually has to pay out the value of annual leave the worker has accrued but not yet taken (leave encashment, payment in lieu of leave, the leave portion of a final settlement). This module turns that calculation into a structured, repeatable, auditable process.
Enter each leaver's leave-year window, termination date, annual leave entitlement, the leave they have already taken and their salary. The calculator pro-rates the accrued leave to the last day of service, nets off leave already taken, applies any encashment cap, and values the remaining days at the daily rate of pay derived under the convention you choose. The full, line-by-line working is shown so you can justify every figure.
Pro-rata accrual to the termination date
Accrued leave is the annual entitlement scaled by the part of the leave year actually served. Choose calendar-day accrual (days served / days in year) or completed-month accrual (months served / 12), and optionally round the result up to the nearest half day. Mid-year joiners are handled with a service-start date.
Six daily-rate conventions
The value of a day of leave depends on how a day's pay is derived. Pick the divisor your contract or jurisdiction uses: annual salary / 365, the 30/360 calendar, monthly salary / 30, monthly salary / 26 working days, true working days (days-per-week × 52), or a custom divisor you enter.
Untaken balance & carryover
Untaken leave = accrued + carried-over balance − leave already taken. Carryover from a prior leave year that also falls to be paid out is supported. A worker who has taken more leave than accrued is flagged as overdrawn, the negative days are quantified, and no leave payout is generated for them.
Encashment cap & notice pay
Many policies cap how many days may be cashed out. Set a cap and the calculator splits the untaken balance into cashable and forfeited days. An optional payment-in-lieu-of-notice line is valued at the same daily rate and added to the gross payout.
Feature summary
| Feature | Detail |
|---|---|
| Daily-rate bases | 365 calendar, 360 (30/360), monthly/30, monthly/26, working days, custom divisor |
| Accrual methods | Calendar days served, completed months served, optional half-day round-up |
| Pro-rating | Automatic to the termination date; mid-year join supported; or take the full entitlement |
| Balance | Accrued + carryover − taken; overdrawn detection and quantification |
| Caps | Encashment cap splits untaken days into cashable vs forfeited |
| Notice | Optional payment in lieu of notice at the same daily rate |
| Hourly | Derived hourly rate from a day's pay and hours per day |
| Batch | One payout run holds many leaver lines with per-company defaults |
| Export | CSV register of the full working for payroll / archive |
| Quick tool | Standalone wizard for a single ad-hoc calculation |
How it works
- Set the company defaults (rate basis, accrual method, days per week, encashment cap) once, under the company form.
- Optionally record each employee's salary, rate basis and service start on the new Leave Payout tab.
- Create a Leave Payout run and add one line per leaver, or use the Payout Calculator wizard for a quick one-off figure.
- Press Compute. Every line shows days served, accrued days, untaken days, cashable vs forfeited, the daily rate and divisor, the leave payout, notice pay and gross payout.
- Export the CSV register and confirm the run.
Scope & honesty
This is a pure calculator. It computes the encashment
value from inputs you provide and the conventions you select.
The annual leave entitlement itself is an input — supply
it from your statutory leave engine or company policy. Every
divisor and accrual rule here is an arithmetic convention, not a
country-specific statutory rate, so the module is safe to use in
any jurisdiction once you choose the convention that applies.
Built on the Odoo Community hr base; no Enterprise
modules required.
Screenshots
Payout Calculator
Leave Payouts
Update date: 2026-07-02