This feature will allow you to set the encashment for the unused leave at the end of the period of a certain Leave Policy. 

For example : 

  • If the leave policy entitlement starting date is set as "Hiring Date" and the employee's hiring date is 12 Nov 2018, the encashment amount for the current period will appear on 11 Nov 2021
  • If the leave policy entitlement starting date is set as "Custom Date 1 Jan", the encashment amount for the current period (1-31 Dec 2021) will appear on 31 Dec 2021


1. Go to Settings


2. Go to Leave 


3. Select 'Leave Policy'


4. Select the leave policy you would like set and click on 'Edit Button'

    After the Leave Policy settings window is open, scroll down the page and you will find the 'Convert Leave on End Period'


5. Set the Priority of Encashment 

    By default this will set as 'Forfeit' meaning the unused balance will remain the same (no deduction) in Leave Balance Report. If you want to set it as 'Encashment' you need to click on the 'Encashment' option. Yet, if you would like the leave balance able to be carried forward to the next period, you could select 'Carry Forward'. 


6. Set the Encash Balance Amount 

     Set leave balance that you want to encash for resigned employee & set adhoc Exemption Policy. For example, if the encashment is set for Annual Leave is 5 days, hence : 

  • if the unused balance in the end period is 2 days, this will appear 2 days not 5 days
  • if the unused balance in the end period is 9 days, this will appear 5 days but the user can edit it to encash balance until max 9 days. 

The amount of the leave encashment will appear in the selected adhoc Exemption Policy. This will appear in the Payment Exemption table and Payslip. The amount of encashment in the system will be calculated based on the following formula : 


                    Basic Salary X 12 / (52 X weekly working days) X total leave day to encash



7. Click on 'Save Changes' to save the Encashment Settings 


Once the Leave Policy Setting is saved, the system will execute the auto-encashment start from midnight for the new end period event that happens after the new Leave Policy setting is saved. The encashment result will appear as follows after the system: 

a. Leave History table in Leave tab under Employee Profile

 b. Payment Exemption tab under Payment menu

c. The Employee's payslip