Leave encashment affects the end-of-service calculation. With the Daily Wage Calculator, you can overwrite leave encashment policies under payroll settings. You will be allowed to pick the salary components applicable to leave encashments:
Basic + Allowances
Super admins can define monthly calculation as:
Super admins will also be able to see which of the eligible paid leave-type policies will be overwritten.
Setting leave types eligible Encashment in End of Service
Super admins can use the Daily Wage Calculator to configure individual leave types for end-of-service calculations.
You can access it by going to Settings > Payroll > End of Service eligibility > Configure