New Delhi, June 7 -- Salaried employees are entitled to a certain number of paid leaves every year, but there may be times when they are unable to utilise all of them. In many companies, unused leaves in a year can be carried forward to later years, allowing employees to accumulate a leave balance until they retire or resign from their position in the organisation.

As a result, employees often end up with a stock of unutilised leave by the time they leave their company. Instead of availing these leaves as time off, they may choose to receive monetary compensation from their employer. This payment in return of unused leave is known as leave encashment.

While leave encashment can provide an additional financial benefit, it is also subject...