Paid Time Off (PTO) in India is governed by a combination of central and state-specific labor laws. Employees are entitled to different types of leave, including earned leave, sick leave, and casual leave, depending on the state, company policy, and sector. Understanding India’s diverse leave policies is crucial for ensuring legal compliance and creating a fair, productive workplace.
Learn about India’s statutory leave entitlements and employer responsibilities.
In India, employees are typically entitled to earned leave (EL), also known as privilege leave (PL). According to most state laws, employees earn one day of leave for every 20 days worked. The number of earned leave days generally ranges from 15 to 30 days per year, depending on the sector and the state in which the business operates.
Employees are generally entitled to sick leave ranging from 5 to 12 days annually, depending on state legislation. Sick leave is usually paid in full and can sometimes be carried over if unused, subject to company policy and local regulations.
India observes national holidays and a variety of state-specific holidays based on regional, cultural, and religious events. There are typically 3 mandatory national holidays—Republic Day, Independence Day, and Gandhi Jayanti—with additional holidays determined by state governments. Employees are generally entitled to these days off with pay.
Most Indian labor laws allow employees to carry over unused earned leave, with limits usually set between 30 and 45 days. If an employee resigns or retires, they are entitled to be paid for unused earned leave. However, sick leave and casual leave typically cannot be carried forward unless specified by the company policy.
Follow these strategies to ensure compliance and efficient PTO management.
Learn more about how we can help you optimize your PTO policies and ensure compliance with Indian labor laws.
Say goodbye to messy email chains and manual tracking. With a streamlined PTO management system, you can keep all requests and records in one place, making it easy to approve time off and manage employee schedules efficiently.
Every company has unique needs, and your PTO policies should reflect that. Customize your time-off rules to match your team’s structure, ensuring fairness and clarity while maintaining flexibility.
Give your employees the confidence to plan their time off without uncertainty. By providing real-time access to balances and request statuses, you create a more transparent and trusting workplace.
Sync TrackingTime with the tools your team uses every day to fit their work habits. This way, they can keep track of every minute without switching between apps.
Check out +50 integrations
We believe that our clients' success is our success, and we are committed to doing everything we can to help them achieve their goals. We're proud to assist them with their daily struggles to improve their workdays, and we appreciate their positive feedback.
Gather, access and store accurate employee clock-in/out data to comply with legal requirements.
More on Time CardsAccess and manage your time data anytime, anywhere. Create a timesheet for each process to analyze and share with your team and clients.
More on Employee TimesheetsEnsure your team tracks hours correctly, fulfil their work plan, and keep their time goals complete.
More on Attendance Tracking