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Leave policy in India
Maternity, paternity, and parental leave in India
Adoption leave in India
Other types of leave in India
Public holidays in India
Gain a competitive edge with CXC
Paid time off in India
With India’s complex and diverse labour laws, it is crucial to comply with regulations, especially concerning paid time off and leave benefits. Beyond compliance, understanding and staying updated with these regulations reflects your commitment to fostering a positive work environment that values employees’ rights and well-being.
The scope of paid time off in India encompasses casual leave, sick leave, and earned leave, among others. These entitlements vary depending on the work, company size, and state of operation.
In this detailed guide, we’ll provide everything you need to know about the paid time off and leave entitlement policy in India, including maternity and paternity leave and other types of non-statutory leave that you can offer to your employees that can help you craft a competitive compensation package.
Leave policy in India
Annual leave policy in India
The Indian leave policy grants employees a minimum of 15 days of paid holiday annually, contingent upon the completion of 240 days of employment within your organisation. It is, however, a widely adopted practice to offer additional leave days beyond this statutory requirement. Such flexibility not only enhances employee satisfaction but also positions your organisation as a preferred employer.
The annual leave policy in India is governed by the Factories Act of 1948. Employees who are 18 years old and above, known as adult employees, are eligible for annual leave with wages, earning one day of leave for every 20 days they worked in the previous calendar year. Meanwhile, young employees, defined as those under the age of 18, are entitled to one day of leave for every 15 days they have worked.
Meanwhile, the Shops and Establishment Act, applicable to employees in commercial establishments, mandates different leave benefits depending on the state but generally includes provisions for annual leave, casual leave, and sick leave.
Medical leave policy in India
The medical leave policy for employees is governed by various acts depending on the nature of the employment and the sector.
The Apprentices Act allows individuals appointed as apprentices to accumulate up to 40 days of medical leave, with a maximum of 15 days per year.
For employees covered under the Plantation Labour Act, 1951, the sick leave entitlement is in accordance with company policies.
Moreover, companies in India often have their own sick and medical leave policies, which can include provisions aligned with the Earned Leave rules under the Factories Act of 1948. This act provisionally allows for 1 day of paid sick leave for every 20 days worked, capping at 18 days annually.
Sick leave policy in India
Employees in continuous service for a minimum of three months are eligible for 15 days of paid sick leave annually and are required to submit a medical certificate within 48 hours following the onset of their illness.
The government sets the compensation for this leave at 70% of the employee’s usual daily wage. In private sector companies, it is the responsibility of the employers to cover this cost, with no option for reimbursement from the government.
For factory workers, no distinct sick leave category exists; they must utilise their allocated annual leave for any health-related or casual absences.
Presently, there are no specific guidelines for providing paid sick leave in situations requiring extended absences or for injuries sustained while working. Under such circumstances, unpaid leave is provided at the employer’s discretion, underscoring the importance of employer flexibility and support for their workforce’s health needs.
Marriage leave policy in India
There is no standardised legal requirement for marriage leave applicable to all employees. Generally, employees can use their vacation or casual leave for this purpose. Companies looking to hire talent in India must keep in mind that employees typically take 3–15 days for this special occasion. However, the grant of marriage leave depends on the company’s discretion and its leave policy.
While marriage leave is common in India, its duration and conditions can differ significantly from one organisation to another. Employees usually need to apply in advance and provide relevant proof, such as a wedding invitation, to avail themselves of this leave.
Bereavement leave policy in India
In India, there are no specific laws mandating bereavement leave for employees. Companies can create their own policies for bereavement leave, and these policies may include leaves for situations like the death of an immediate family member or a pet. The details of such leave, including its duration and eligibility, are determined by individual company policy and may vary widely across different organisations.
While some companies may offer a set number of bereavement leave days, others may address it on a case-by-case basis. Generally, policies may specify the payment status of the leave, the employee’s relationship to the deceased, and any required documentation.
Leave policy for private companies in India
The leave policy for private companies in India incorporates both labour laws and market practices to formulate employee leave entitlements. While labour laws establish a baseline for minimum leave entitlements, many companies go beyond these stipulations as part of their commitment to employee welfare and to stay competitive in the job market. The common types of leaves include earned leave, casual leave, sick leave, and maternity leave, among others.
Maternity, paternity, and parental leave in India
Maternity leave policy in India
The Maternity Benefit Act of 1961, as amended in 2017, has set a clear and considerate framework to support working women during the significant life event of childbirth. Businesses in India must ensure their maternity leave policy aligns with the Act.
Under the amended Act, eligible female employees are entitled to their full daily wages for a duration of 26 weeks. This paid maternity leave is only applicable for the first two children. For the third child, the paid maternity leave duration is 12 weeks.
Adoptive mothers and commissioning mothers (in the case of surrogacy) are also entitled to 12 weeks of paid maternity leave from the date the child is handed over.
One of the significant features of India’s maternity leave policy is the inclusion of a work-from-home provision post-maternity leave, subject to the nature of work and mutual agreement between the employer and the employee.
It is mandated that no female employee shall undertake work for a period of six weeks following the birth of her child or a miscarriage. Eligibility for this entitlement requires the employee to have served the company for a minimum of 80 days within the 12 months immediately prior to the anticipated delivery date.
Paternity leave in India
In India, there is currently no national policy that mandates paid paternity leave across all sectors.
Paternity leave policies allow fathers to take paid time off work following the birth (or adoption) of a child. The duration and the terms of this leave can vary based on the employer’s internal policies for private companies, while certain government employees are entitled to paid paternity leave as per the guidelines issued for them.
For instance, central government employees are entitled to 15 days of paid paternity leave, which can be availed either before or within six months from the date of the child’s birth. However, this provision is restricted to the first two children.
Given the diverse corporate culture in India, some progressive private companies have started to offer paid paternity leave, understanding its benefits for employee well-being. The duration and specifics, however, greatly depend on the company’s individual policy.
Parental leave in India
While there are no statutory laws specifically mandating general parental leave, modern and progressive companies in India’s private sector, recognising the importance of supporting working parents, often go beyond these legal requirements to establish their own comprehensive parental leave policies. These policies not only extend the duration but sometimes also include flexibility in leave usage, which can be a key factor in retaining talent and maintaining employee satisfaction.
For companies striving to be preferred employers, it is recommended to adopt parental leave policies that support both mothers and fathers. This facilitates a supportive work environment and directly contributes to increased employee loyalty and satisfaction. Such policies are seen as progressive and can significantly enhance the company’s reputation, making it an attractive place to work.
Adoption leave in India
The adoption leave policy in India provides 12 weeks of maternity leave benefits to employees who officially adopt an infant under three months old, as well as commissioning mothers who participate in the IVF process by contributing their own eggs. This provision is intended to foster an environment of support and care for the new mother and child during the critical early stages of development.
In addition, businesses that have a workforce of 50 or more individuals are required to establish a crèche (day care centre) facility within a reasonable distance. This could be a standalone setup within the prescribed distance or a shared amenity.
It is important to take note that employers should allow the employee four visits throughout each working day to the crèche (daycare centre). These visits should be well-integrated with the rest periods already provided to the employee, thereby offering convenience, and lessening any potential stress related to childcare during work hours.
Other types of leave in India
In the competitive Indian job market, companies strive to distinguish themselves by offering different types of non-statutory employee leave beyond the minimum legal requirements. These benefits often play a pivotal role in attracting, retaining, and nurturing a productive workforce. The most common types of non-statutory employee leave are:
Education/study leave in India
Organisations may provide education leave to employees wishing to pursue higher education or specific courses to enhance their professional skills. Such leave could be either paid or unpaid and usually requires the employee to render a certain period of service following their educational pursuits.
Work from home (WFH) days in India
WFH days are becoming increasingly common and are offered by many companies as an alternative to traditional leave. This allows employees to manage personal responsibilities while still being engaged with work, promoting work-life balance.
Birthday leave in India
Some companies, focusing on personal well-being and joy, allow employees to take a day off on their birthdays. This gesture enhances the sense of belonging and appreciation among employees.
Compassionate leave in India
In times of family emergencies, such as a critical illness of a family member, compassionate leave is an empathetic gesture by employers to facilitate employees’ presence where they are most needed, without the added stress of work obligations.
Sabbatical leave in India
To encourage continuous learning and prevent burnout, progressive companies offer sabbatical leave. Typically, this type of leave is available to long-tenured employees, which can be used for personal development, pursuing academic goals, or simply rejuvenating. Offering sabbatical leave to tenured employees can significantly boost morale and employee satisfaction.
Volunteering leave in India
Some companies encourage community service by providing volunteer leave, allowing employees to take time off to contribute to social causes or participate in corporate social responsibility (CSR) activities
Public holidays in India
Public holidays in India are a mix of national, religious, and regional holidays. Holidays are set at both the Union (central) and State levels, so the number and dates vary significantly by state, industry, and employer policy. Across India, the three national holidays observed countrywide are Republic Day (26 January), Independence Day (15 August), and Gandhi Jayanti (2 October). Beyond these, employers typically observe additional gazetted and restricted holidays depending on location and workforce needs.
List of Holidays (2026)
The following holidays are observed during 2026:
01 January (Thursday).
New Year’s Day
26 January (Monday).
Republic Day
04 March (Wednesday).
Holi
21 March (Saturday).
Id-ul-Fitr
26 March (Thursday).
Ram Navami
03 April (Friday).
Good Friday
01 May (Friday)
Labour Day
27 May (Wednesday)
Id-ul-Zuha (Bakrid)
26 June (Friday)
Muharram
15 August (Saturday)
Independence Day
26 August (Wednesday)
Id-e-Milad (Prophet Mohammad’s Birthday)
04 September (Friday)
Janmashtami
02 October (Friday)
Mahatma Gandhi's Birthday
20 October (Tuesday)
Dussehra (Vijay Dashami)
08 November (Sunday)
Diwali (Deepavali)
24 November (Tuesday)
Guru Nanak's Birthday
25 December (Friday)
Christmas Day
Gain a competitive edge with CXC
With India’s dynamic job market, creating attractive compensation packages that go beyond the basic leave requirements and entitlements can help companies stand out in the competition. However, keeping track of the regulatory changes and aligning them with your policies can be quite a challenge.
This is where CXC steps in. When you partner with CXC to hire workers, we take on the responsibility of making sure all your worker engagements comply with the full range of employment laws, both within India and internationally. This guarantees that your employees receive all the benefits they’re supposed to, keeping them happy and productive. At the same time, your business stays secure and protected against any compliance risks.
Let’s simplify how you manage your global workforce with our Employer of Record (EoR) solution. Our expert team is here to guide you through the complexities of employment compliance and benefits administration, allowing your business to focus on what it does best.
FAQ's
1. What types of paid leave are employees entitled to in India?
Employees in India may be entitled to paid annual or earned leave, sick leave, casual leave, maternity leave and paid public holidays, but the exact entitlement varies by the employee’s location and the law covering their workplace.
Under the Occupational Safety, Health and Working Conditions (OSH) Code, 2020, covered individuals who fall within the Code’s definition of “worker” who work at least 180 days in a calendar year earn annual leave at a rate of one day for every 20 days worked.
This national rule does not automatically replace every state leave entitlement or apply identically to all managerial, administrative or supervisory employees. Employers must identify which central or state law applies to each employee. For employees in shops and commercial establishments, leave policy in India is also shaped by state law. For example, Delhi provides at least 15 days of privilege leave after 12 months, plus at least 12 days of sickness or casual leave. Assam provides 16 days of privilege leave, 12 days of medical leave and 12 days of casual leave for qualifying employees. Maternity leave and other statutory absences are governed separately.
2. How has the OSH Code 2020 changed India's leave policy?
The OSH Code makes paid annual leave available after 180 days of work in a calendar year, with eligible workers earning one day of paid leave for every 20 days worked. This means an employee who works 300 days would earn 15 days of paid annual leave.
The Code also sets clearer rules for unused leave. Employees can generally carry forward up to 30 days of unused annual leave to the next year. If an employee requested leave but the employer refused it, that refused leave can be carried forward without the 30-day limit.
A worker may also request encashment of leave above the permitted carry-forward limit at the end of the calendar year. Accrued leave must be settled when employment ends in the circumstances covered by the Code. Public holidays that fall during annual leave do not count as annual leave days. Maternity leave also counts towards meeting the 180-day eligibility requirement, although employees do not earn additional annual leave for that maternity leave period.
3. How many vacation days do employees get in India?
Employees in India are entitled to paid annual leave, but the number of vacation days varies by work location and the employment law covering the employee.
For employees in shops, offices and other commercial establishments, vacation days in India are often determined by the relevant state’s Shops and Establishments law. This means entitlements can differ between states.
For example, eligible employees in Delhi generally receive at least 15 days of privilege leave, while eligible employees in Assam may receive 16 days, subject to the requirements of the respective state laws.
Eligible workers covered by the OSH Code generally earn one day of annual leave for every 20 days worked after completing at least 180 days of work in the calendar year. This formula should not be assumed to override a more favourable state, contractual or collective entitlement. Employers can provide more paid annual leave than the statutory minimum through their employment contracts or leave policy in India. The policy should explain accrual, carry-over, encashment, approval and treatment of leave when employment ends.
4. How does sick leave work in India?
Employees in India may be entitled to paid sick leave, but the number of days varies by state and the employment rules that apply to their workplace.
For many employees working in offices, shops and other private-sector workplaces, sick leave in India is set by the relevant state’s Shops and Establishments law. For example, Delhi provides at least 12 days of combined sick and casual leave each year, while Assam provides eligible employees with 12 days of medical leave.
Some employees are also covered by Employees’ State Insurance (ESI). This is separate from employer-provided sick leave. Eligible employees can receive an ESI sickness cash benefit for up to 91 days across two consecutive benefit periods, subject to the required contributions. Ordinary ESI sickness benefit is generally paid at approximately 70% of average daily wages, subject to the scheme’s eligibility and certification requirements.
An ESI cash benefit does not automatically replace every sick-leave entitlement provided by state law, contract or company policy. Employers should confirm whether salary continuation, ESI benefits or both apply and avoid recording certified sickness as annual leave without a lawful basis.
5. What maternity and parental leave are employees entitled to in India?
Eligible women in India can receive up to 26 weeks of paid maternity where they have fewer than two surviving children. . Women with two or more surviving children are entitled to up to 12 weeks.
To qualify for maternity leave in India under the Code on Social Security, a woman generally must have worked for the employer for at least 80 days during the 12 months before the expected delivery date.
A woman who legally adopts a child under three months old, or a commissioning mother, is entitled to 12 weeks of maternity benefit from the date the child is handed over to her.
India does not have an equivalent general statutory paternity or parental leave entitlement for private-sector employees under the Labour Codes. Employers may choose to provide paternity or additional parental leave through company policy.
Different payment arrangements can apply where the employee qualifies for maternity benefit through ESI. Employers should check ESI coverage and contribution conditions before determining who is responsible for payment.
6. What are the employer obligations during maternity leave in India?
Employers must pay eligible maternity benefits, protect the employee’s employment during maternity leave and provide the other maternity protections required by law. Where the employee is not entitled to maternity benefit through ESI, the employer may be responsible for paying the statutory maternity benefit. Where ESI applies and the employee satisfies the contribution conditions, the benefit may instead be paid through ESIC.
An employer cannot dismiss an employee because she takes statutory maternity leave in India, give notice designed to expire during that absence, or change her employment conditions to her disadvantage because she is on maternity leave.
Employers with 50 or more employees must also provide access to a crèche facility, and eligible women must be allowed four visits to the crèche each day, including rest intervals. The crèche may be maintained separately or through a shared facility, subject to the applicable rules.
Where the employee’s role can be performed remotely, work from home may also be agreed between the employer and employee after maternity leave.
7. What is the nursing break entitlement in India?
An employee in India returning to work after childbirth is entitled to two nursing breaks during each working day until her child reaches 15 months of age. These breaks are provided in addition to the employee’s normal rest interval.
Nursing breaks form part of India’s statutory maternity protections and should not be treated as annual leave or unpaid time off.
Employers also cannot reduce the employee’s normal wages simply because she takes the nursing breaks to which she is legally entitled.
Where a crèche is provided, separate rules also allow eligible women to visit the crèche during the working day. The four permitted crèche visits include the employee’s normal rest interval and should be distinguished from the two statutory nursing breaks.
8. What other types of leave exist in India?
Other leave in India includes casual leave for short, unexpected personal absences and protections or benefits when an employee cannot work because of a work-related injury.
Casual leave is usually governed by state Shops and Establishments laws rather than one nationwide entitlement. For example, Assam provides up to 12 days of paid casual leave, while Delhi combines sickness and casual leave into an entitlement of at least 12 days per year. Statutory maternity protections also provide specific periods of paid leave in circumstances such as miscarriage or medical termination of pregnancy, tubectomy operations and illness arising from pregnancy, delivery, premature birth, miscarriage or medical termination, subject to the applicable evidence and conditions.
For a work-related injury, employees covered by Employees’ State Insurance may qualify for temporary disablement benefit when an employment injury prevents them from working. ESI rules provide temporary disablement benefit at the applicable full rate, calculated at 90% of average daily wages under the relevant rules.
This is different from ordinary sick or casual leave because it is linked specifically to an employment injury.
9. How do public holidays affect paid leave in India?
Public holidays generally do not reduce annual leave when the applicable law treats them separately, but employers must check the holiday rules for the state where the employee works. Under the OSH Code, holidays falling during a period of annual leave are excluded from the annual leave used.
India also uses the terms gazetted holiday and restricted holiday, particularly in government holiday calendars. A gazetted holiday is an officially declared holiday on the applicable government calendar. A restricted holiday is an optional holiday from a wider list that eligible employees may choose according to the applicable holiday policy. The Government of India’s calendar identifies holidays as “G” for Gazetted and “R” for Restricted.
For private employers, however, the government’s central holiday calendar should not simply be copied into the company’s leave policy in India. State holiday laws and local requirements determine which holidays an establishment must observe. Private employers should confirm the applicable national and festival holidays, any requirement to publish an annual holiday list and the rules for employees who work on a mandatory holiday. Depending on the state and industry, compensatory time off or premium pay may be required.
10. How can CXC help businesses stay compliant with leave policies in India?
CXC manages leave compliance in India through its Employer of Record capabilities, administering employee entitlements, leave records, payroll adjustments and statutory benefits across both central and state requirements.
CXC can manage annual and earned leave, sick leave in India, maternity benefits, public holidays and other applicable absences as part of the wider employment and payroll process. This includes calculating leave entitlements, maintaining balances, processing leave-related payroll changes and supporting the documentation required for statutory absences.
For companies employing people across multiple Indian states, CXC’s local capability is particularly important because annual leave, sick leave, casual leave and holiday requirements can vary by location.
International companies can therefore manage their Indian workforce through one employment framework while CXC applies the local rules relevant to each employee.
Compliantly hire employees anywhere with CXC
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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