diff --git a/erpnext/payroll/doctype/salary_slip/salary_slip.py b/erpnext/payroll/doctype/salary_slip/salary_slip.py
index 302c0d2853a..966df76c6ee 100644
--- a/erpnext/payroll/doctype/salary_slip/salary_slip.py
+++ b/erpnext/payroll/doctype/salary_slip/salary_slip.py
@@ -315,7 +315,7 @@ class SalarySlip(TransactionBase):
 		)
 
 		working_days = date_diff(self.end_date, self.start_date) + 1
-		working_days_list = [add_days(self.start_date, i) for i in range(working_days)]
+		working_days_list = [add_days(self.start_date)for i in range(working_days)]
 
 		if for_preview:
 			self.total_working_days = working_days
@@ -324,6 +324,8 @@ class SalarySlip(TransactionBase):
 
 		holidays = self.get_holidays_for_employee(self.start_date, self.end_date)
 
+		joining_date, relieving_date = self.get_joining_and_relieving_date()
+
 		if not cint(include_holidays_in_total_working_days):
 			working_days -= len(holidays)
 			working_days_list = [cstr(day) for day in working_days_list if cstr(day) not in holidays]
@@ -335,10 +337,10 @@ class SalarySlip(TransactionBase):
 			frappe.throw(_("Please set Payroll based on in Payroll settings"))
 
 		if payroll_based_on == "Attendance":
-			actual_lwp, absent = self.calculate_lwp_ppl_and_absent_days_based_on_attendance(holidays)
+			actual_lwp, absent = self.calculate_lwp_ppl_and_absent_days_based_on_attendance(holidays, relieving_date)
 			self.absent_days = absent
 		else:
-			actual_lwp = self.calculate_lwp_or_ppl_based_on_leave_application(holidays, working_days_list)
+			actual_lwp = self.calculate_lwp_or_ppl_based_on_leave_application(holidays, working_days_list, relieving_date)
 
 		if not lwp:
 			lwp = actual_lwp
@@ -461,7 +463,7 @@ class SalarySlip(TransactionBase):
 	def get_holidays_for_employee(self, start_date, end_date):
 		return get_holiday_dates_for_employee(self.employee, start_date, end_date)
 
-	def calculate_lwp_or_ppl_based_on_leave_application(self, holidays, working_days_list):
+	def calculate_lwp_or_ppl_based_on_leave_application(self, holidays, working_days_list, relieving_date=None):
 		lwp = 0
 
 		daily_wages_fraction_for_half_day = (
@@ -469,6 +471,9 @@ class SalarySlip(TransactionBase):
 		)
 
 		for d in working_days_list:
+			if relieving_date and getdate(d) > getdate(relieving_date):
+				break
+
 			leave = get_lwp_or_ppl_for_date(d, self.employee, holidays)
 
 			if leave:
@@ -488,10 +493,15 @@ class SalarySlip(TransactionBase):
 
 		return lwp
 
-	def calculate_lwp_ppl_and_absent_days_based_on_attendance(self, holidays):
+	def calculate_lwp_ppl_and_absent_days_based_on_attendance(self, holidays, relieving_date=None):
 		lwp = 0
 		absent = 0
 
+		end_date = self.end_date
+
+		if relieving_date:
+			end_date = relieving_date
+
 		daily_wages_fraction_for_half_day = (
 			flt(frappe.db.get_value("Payroll Settings", None, "daily_wages_fraction_for_half_day")) or 0.5
 		)
@@ -516,7 +526,7 @@ class SalarySlip(TransactionBase):
 				AND docstatus = 1
 				AND attendance_date between %s and %s
 		""",
-			values=(self.employee, self.start_date, self.end_date),
+			values=(self.employee, self.start_date, end_date),
 			as_dict=1,
 		)
 
diff --git a/erpnext/payroll/doctype/salary_slip/test_salary_slip.py b/erpnext/payroll/doctype/salary_slip/test_salary_slip.py
index 32d0c7ed08f..84f436a03b6 100644
--- a/erpnext/payroll/doctype/salary_slip/test_salary_slip.py
+++ b/erpnext/payroll/doctype/salary_slip/test_salary_slip.py
@@ -1129,6 +1129,35 @@ class TestSalarySlip(FrappeTestCase):
 				self.assertEqual(deduction.amount, rounded(monthly_tax_amount))
 
 
+	@change_settings("Payroll Settings", {"payroll_based_on": "Leave"})
+	def test_lwp_calculation_based_on_relieving_date(self):
+		emp_id = make_employee("test_lwp_based_on_relieving_date@salary.com")
+		frappe.db.set_value("Employee", emp_id, {"relieving_date": None, "status": "Active"})
+		frappe.db.set_value("Leave Type", "Leave Without Pay", "include_holiday", 0)
+
+		month_start_date = get_first_day(nowdate())
+		first_sunday = get_first_sunday(for_date=month_start_date)
+		relieving_date = add_days(first_sunday, 10)
+		leave_start_date = add_days(first_sunday, 16)
+		leave_end_date = add_days(leave_start_date, 2)
+
+		make_leave_application(emp_id, leave_start_date, leave_end_date, "Leave Without Pay")
+
+		frappe.db.set_value("Employee", emp_id, {"relieving_date": relieving_date, "status": "Left"})
+
+		ss = make_employee_salary_slip(
+			"test_lwp_based_on_relieving_date@salary.com",
+			"Monthly",
+			"Test Payment Based On Leave Application",
+		)
+
+		holidays = ss.get_holidays_for_employee(month_start_date, relieving_date)
+		days_between_start_and_relieving = date_diff(relieving_date, month_start_date) + 1
+
+		self.assertEqual(ss.leave_without_pay, 0)
+
+		self.assertEqual(ss.payment_days, (days_between_start_and_relieving - len(holidays)))
+
 def get_no_of_days():
 	no_of_days_in_month = calendar.monthrange(getdate(nowdate()).year, getdate(nowdate()).month)
 	no_of_holidays_in_month = len(