Leave Encashment बिदा सटही

The two moments it happens

• At the end of a year in which a balance sits above its ceiling. Section 49(3) pays out the excess rather than letting it lapse or keep building.
• When an employee leaves, or dies. Section 49(2) settles the whole accumulated home and sick leave balance as a lump sum, to the employee or to the family.

It is basic pay, and it is the last one drawn

Section 49(2) sets the rate at "the last basic remuneration being drawn". Two things follow. It is basic, not gross, so allowances do not enter the figure, and it is the last one, so a raise shortly before an exit raises the whole accumulated payout rather than only the days earned after it.

The Act does not state what a monthly basic is divided by to reach a day. Nepali payroll practice uses a flat thirty, and a policy that uses something else should say so in writing before anyone reaches their exit interview.

The liability nobody books

An accumulated leave balance is a real obligation. It is paid eventually, either as leave taken or as cash, and a company that has never quantified it is carrying an unrecorded cost.

The number is easy to produce once balances are accurate: days accrued, less days taken, per employee, valued at their last basic. It is the accuracy of the balances, not the arithmetic, that is usually the problem.

What is not encashable

Mourning, maternity and paternity leave are purpose-specific entitlements rather than earned balances, and Section 49 does not name them. They are not encashed. Company policy should say so explicitly instead of leaving employees to assume otherwise at exit.