--- title: "Leave Rules in India: Sick, Maternity, Earned | LekhaHR" description: "Leave rules in India: earned leave under the OSH Code, sick leave by state, 26 weeks’ maternity leave, leave in probation, sandwich leave and encashment." canonical: https://lekhahr.in/guides/leave-rules/ last_updated: 2026-10-06 --- > Design preview · sample data. Product previews and filled examples on this page use one sample company, Paiteq Technologies, and its people. They are not a LekhaHR customer, a testimonial or usage figures. Leave rules · guide · updated 6 Oct 2026, [checked by the LekhaHR team](https://lekhahr.in/editorial-policy/) # Leave rules in India: the Code sets annual leave, your state sets the rest. Earned leave for workers in establishments with 10 or more workers follows the OSH Code: 1 day for every 20 days worked, carried forward up to 30 days. Casual and sick leave minimums come from each state's Shops and Establishments law and vary. Everything above those floors, including the sandwich rule, is your policy to write. The sandwich rule Carry forward and encashment Key facts - The OSH Code's annual leave applies in establishments with 10 or more workers. Below that, your state's Shops and Establishments law sets every leave minimum. - Under the OSH Code, in force since 21 Nov 2025, a worker who has worked 180 days or more in a calendar year earns annual leave at 1 day for every 20 days worked. - Unused annual leave carries forward up to 30 days for the workers the OSH Code covers, and all of it is encashed when they leave. - There is no single national number for casual or sick leave. Each state's Shops and Establishments law sets its own minimum, and some states combine the two. - The sandwich rule counts weekly offs or holidays between two leave days as leave. It is a policy choice for casual or company leave, and it cannot apply to annual leave under the OSH Code. because most leave disputes are about a rule nobody wrote down. No. 01 Leave types ## Which leave types does a small company need? Three cover most teams: earned leave for planned time off, casual leave for short notice, and sick leave for illness. Maternity leave follows the Code on Social Security. Add others, such as bereavement or marriage leave, only when you can say who approves them and how many days they give. - **01Earned leave (privilege leave, annual leave)**: accrues as you work because it is earned by time worked, credited monthly or yearly, and carries forward. For the workers the OSH Code covers, the Code's annual leave is the floor: 1 day for every 20 days worked once someone has worked 180 days in the calendar year. Paiteq's sample policy is 15 a year · 1.25 on the 1st of each month. - **02Casual leave**: short, unplanned days because it covers a day or two for personal reasons at short notice. It usually lapses at the year end and is not encashed. Your state's Shops and Establishments law sets the minimum; Paiteq's sample policy is 12 a year · 1.0 on the 1st of each month. - **03Sick leave**: illness, with proof after a few days because it covers illness. A certificate rule needs two lines most policies forget: what counts as a certificate (a registered medical practitioner's note, a teleconsultation included) and what happens without one (the days move to casual or earned leave first, then loss of pay, never straight to loss of pay). The state sets the minimum, and some states merge sick and casual leave into one balance. - **04Maternity leave**: up to 26 weeks because the Code on Social Security, Chapter VI, sets it for the establishments it covers, once a woman has worked the qualifying days before the expected delivery. For women insured under ESI, ESIC pays the benefit. When a request goes on paper, the free [leave application format](https://lekhahr.in/resources/leave-application-format/) has a letter for each type. When the balance of every paid type runs out, the next day off is [loss of pay](https://lekhahr.in/guides/loss-of-pay/). No. 02 What the law sets ## What do the OSH Code and state laws set for leave? The OSH Code, in force since 21 Nov 2025, sets annual leave with wages for the workers it covers, in establishments with 10 or more workers. Casual, sick and festival leave come from each state's Shops and Establishments law, which is why no single national figure exists for them. Your policy can give more than either; it cannot give less. - **01Which establishments**: 10 or more workers because the OSH Code applies to establishments with 10 or more workers. Count people working on site through a contractor as well. A team under 10 workers follows its state's Shops and Establishments Act for every kind of leave, annual leave included. - **02Who earns annual leave**: 180 days worked because annual leave under s.32 starts once a worker has worked 180 days or more in the calendar year. A mid-year joiner qualifies after working a quarter of the remaining days of that year. - **03How fast it accrues**: 1 for every 20 because an adult earns 1 day for every 20 days worked in the previous calendar year, so someone at the 180-day minimum earns 9 days. - **04How much carries forward**: up to 30 days because unused annual leave carries forward up to 30 days. Days above that are paid out on the worker's demand at the year end rather than lapsed, and leave applied for and refused is not lost to the cap. Practitioner readings of the Code also pay leave due on exit even when the worker has not reached 180 days that year; confirm it with your lawyer before your first exit. - **05Who the Code covers**: workers because managers, administrators, and supervisors earning over ₹18,000 a month are not "workers" under the OSH Code. Their leave follows the contract, the policy and the state's Shops and Establishments law. - **06Casual, sick and festival leave**: set by each state because they come from each state's Shops and Establishments Act and rules. Check the state where the person works; a company with offices in two states may need two minimums. Which law sets each leave minimum | Leave | Establishment under 10 workers | Workers, establishment of 10 or more workers | Managers, and supervisors over ₹18,000 a month | | --- | --- | --- | --- | | Annual (earned) leave | State Shops and Establishments Act | OSH Code, s.32: 1 day for every 20 worked, once 180 days are worked | Contract and policy, within the state Act where it covers them | | Casual leave | State Shops and Establishments Act | State Shops and Establishments Act | Contract and policy, within the state Act where it covers them | | Sick leave | State Shops and Establishments Act | State Shops and Establishments Act | Contract and policy, within the state Act where it covers them | Count people working on site through a contractor when you check the headcount. Your policy can give more than any column; it cannot give less. State leave minimums · OSH Code, 2020, s.32 and each state's Shops & Establishments Act and rules · [reviewed 6 Oct 2026](https://lekhahr.in/editorial-policy/) No. 02a Sick leave ## How many sick leaves does a company have to give? There is no national sick leave entitlement; each state’s Shops and Establishments Act sets it, and some pool it with casual leave. **Sick leave a year under each state’s Shops and Establishments Act** | State | Sick leave a year | Act | | --- | --- | --- | | Karnataka | 12 | Karnataka Shops and Commercial Establishments Act, 1961 | | Maharashtra | none in the Act (7 is common) | Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 | | Tamil Nadu | 12 | Tamil Nadu Shops and Establishments Act, 1947 | | Telangana | 12 | Telangana Shops and Establishments Act, 1988 | | Delhi | 12, pooled with casual leave | Delhi Shops and Establishments Act, 1954 | | Gujarat | 7 | Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2019 | | West Bengal | 14 at half wages | West Bengal Shops and Establishments Act, 1963 | - Karnataka Sick leave a year 12 - Maharashtra Sick leave a year none in the Act (7 is common) - Tamil Nadu Sick leave a year 12 - Telangana Sick leave a year 12 - Delhi Sick leave a year 12, pooled with casual leave - Gujarat Sick leave a year 7 - West Bengal Sick leave a year 14 at half wages Each state’s Shops and Establishments Act, checked 19 Oct 2026 No. 02b Maternity ## How long is maternity leave in India? Up to 26 weeks with pay, of which up to 8 before the expected delivery. - **Maternity leave**: up to 26 weeks - **Before the expected deliveryBefore delivery**: up to 8 weeks - **With two or more surviving childrenTwo or more children**: 12 weeks - **Adopting or commissioning motherAdopting or commissioning**: 12 weeks ### Who qualifies A woman who has worked 80 days in the 12 months before the expected delivery, in an establishment with 10 or more employees (factories, mines and plantations of any size). For a woman insured under ESI, ESIC pays the benefit. Code on Social Security, 2020, Chapter VI · in force 21 Nov 2025 No. 02c Probation ## What leave can an employee take during probation? - No law sets the length of probation for an office or shop; the appointment letter does (standing orders where they apply). - Annual leave under the OSH Code is earned once the worker has 180 days in the calendar year: 1 day for every 20 worked. A mid-year joiner qualifies after a quarter of the year’s remaining days. - Casual and sick leave follow the state’s Shops and Establishments Act; check when your state’s entitlement starts. - Say in the policy whether leave taken in probation extends it. OSH Code, 2020, s.32 · in force 21 Nov 2025 No. 03 The sandwich rule ## What is the sandwich leave rule, and when is it fair? The sandwich rule counts weekly offs or holidays that fall between two leave days as leave. Asha's Friday and Monday off use 2 days with the rule off and 4 with it on. It stops a two-day request from becoming a four-day absence, which is why some companies use it. It cannot apply to annual leave under the OSH Code, because holidays inside, just before or just after that leave are not counted as leave. ### How to write it into the policy a clause per leave type - **Name the types it covers**: e.g. casual leave only because a rule written for “leave” in general will reach annual leave, where it cannot apply - **Say which days it counts**: weekly offs, holidays or both because people will read the narrowest meaning if the clause is vague - **Say when it starts**: a date, announced first because a rule applied to requests already approved will feel like a penalty - **Show the count on the request**: before it is sent because the person should see 4 days, not discover it on the balance later ### When it feels unfair cases to think through - **A holiday next to a weekend**: can double the count because two days off around a long weekend can use five or six days of balance - **Illness across a weekend**: exempt sick leave because nobody chooses which days they fall ill - **Half days on either side**: decide in advance because a Friday afternoon and Monday morning off are not the same as two full days - **Annual leave of covered workers**: never because the OSH Code does not count holidays within, before or after annual leave Policy wording you can copy > “Sandwich rule (casual leave only). From [date], when casual leave, or casual leave and loss of pay, falls on the working days immediately before and after one or more weekly offs or holidays, those weekly offs and holidays are counted as casual leave, whether the days were applied for in one request or in separate requests. If casual leave runs out, the sandwiched days are loss of pay. The rule does not apply to sick leave supported by a medical certificate, to half days, or to earned leave. The leave request shows the days that will be counted before it is submitted.” The “separate requests” and “loss of pay” words close the two usual ways round the rule: splitting Friday and Monday into two requests, and taking casual leave on one side with LOP on the other. On Asha's request this clause would count 4 days instead of 2, taking her balance from 6 to 2 instead of 4. In a [leave management system](https://lekhahr.in/leave-management-system/) the sandwich rule can be a setting per leave type, so the request shows exactly which days will count before anyone submits it. Which public holidays a state's offices keep next year is set out in the [holiday list 2027](https://lekhahr.in/resources/holiday-list-2027/). No. 04 Carry forward ## How do carry forward and leave encashment work? At the year end, each unused day either carries into the next year, is paid out (encashed) or lapses. Your policy chooses for each type. For the annual leave of workers the OSH Code covers, up to 30 days carry forward, days above that are paid out on the worker's demand, and everything left is encashed when they leave. _Design preview · sample data_ ### Asha Rao · earned leave Jan to Dec · cap 30 days - **Carried forward from 2025**: +8 because 8.0 was left on 31 Dec 2025, under the 30-day cap - **Credited, Jan to Sep**: +11.25 because 1.25 is credited on the 1st, nine times so far - **Earned leave, Mon 11 – Fri 15 May**: −5 because five working days, and no holiday fell inside - **Balance now**: 14.25 - **Still to come, Oct to Dec**: +3.75 because 1.25 is credited on the 1st of each remaining month - **Projected on 31 Dec 2026**: 18 Carries into 2027: 18 days · paid out: 0 The free [leave tracker in Excel](https://lekhahr.in/resources/leave-tracker-excel/) keeps this same balance month by month, with carry forward and encashment worked out at the year end. Leave encashed when someone leaves is part of the [full and final settlement](https://lekhahr.in/guides/full-and-final-settlement/). Carry forward and encashment · OSH Code, 2020, s.32 · in force 21 Nov 2025 · [reviewed 6 Oct 2026](https://lekhahr.in/editorial-policy/) No. 05 Writing the policy ## What should a leave policy say? One page per leave type is enough. Each line below is a question someone will ask in the first year; answer it in the policy and the answer is the same for everyone. - **01Leave year**: Jan to Dec, or Apr to Mar because accrual, carry forward and lapse all run on it. The OSH Code's annual leave runs on the calendar year. - **02Credit**: monthly or yearly because a monthly credit suits small teams with joiners mid-year, and a new joiner's first credit should be stated - **03Notice and approval**: who, and how far ahead because casual leave at short notice and earned leave planned weeks ahead need different rules, and an approver when the manager is away - **04Half days**: allowed or not because a half day of casual leave is common, and the balance should show 0.5 - **05Sandwich rule**: per type, or none because it must never reach the annual leave of workers the OSH Code covers - **06Year end**: carry, encash or lapse because each type needs its own answer, with a cap; for covered workers' annual leave the cap is at least 30 days - **07Balance used up**: loss of pay because the person should know before a request that the extra days will be unpaid A day marked absent that the person actually worked is not a leave question: it is fixed by [attendance regularisation](https://lekhahr.in/guides/attendance-regularisation/) before the payroll cutoff. A true half day off is half a day of leave, applied by the same cutoff. No. 06 Questions ## Questions about leave rules ### What are the earned leave rules in India? For the workers the OSH Code covers, in establishments with 10 or more workers, in force since 21 Nov 2025: someone who works 180 days or more in a calendar year earns 1 day of annual leave for every 20 days worked, unused leave carries forward up to 30 days, and all of it is encashed on exit. Your policy can give more, never less. Managers, and supervisors over ₹18,000 a month, follow the contract and the state law. ### What are the new leave rules in India for 2026? The change came with the OSH Code on 21 Nov 2025, and 2026 is the first full calendar year under it. For the workers it covers, annual leave now starts after 180 days worked in a year instead of 240 under the Factories Act, at 1 day for every 20 worked, so at least 9 days for someone who just qualifies. Unused leave carries forward up to 30 days and is encashed on exit, and holidays next to leave are not counted as leave. Maternity benefit stays at up to 26 weeks; casual and sick leave are still set by each state's Shops and Establishments law. ### What is the 240-day rule for earned leave? It is the old Factories Act test: a factory worker earned annual leave with wages only after working 240 days in the calendar year. Since 21 Nov 2025 the OSH Code has replaced it with 180 days, for workers in establishments with 10 or more workers, factories included, and the leave then accrues at 1 day for every 20 days worked. Someone who joins mid-year qualifies after working a quarter of the days left in that calendar year. If your policy still says 240 days, rewrite it: it now sets a higher bar than the law, and for the workers the Code covers the Code's 180 days apply. Managers, and supervisors over ₹18,000 a month, follow their contract and the state law instead. ### Are Saturdays and Sundays counted in earned leave? Not for the workers the OSH Code covers: holidays falling inside annual leave, or just before or after it, are not counted as leave, so the sandwich rule cannot apply to their earned leave. For managers and anyone else outside the Code, the policy decides, and most small companies apply the sandwich rule, if at all, only to casual leave. Asha's Friday and Monday of casual leave show the difference: 2 days with the rule off, 4 with it on. Whatever you choose, write which leave types the rule covers and let the request show the days that count before it is sent. ### How many casual leaves are allowed in a year? There is no national number. Each state's Shops and Establishments law sets its own minimum for casual and sick leave, and some combine the two. In practice, small Indian companies write 6 to 12 casual and 6 to 12 sick days, or one “paid leave” balance of 18 to 24 days when the founder does not want to police which kind a day is. Check your state's minimum first; the number in your policy can be higher, never lower. ### What is the sandwich leave policy, and is it legal? It counts weekly offs or holidays that fall between two leave days as leave. Take Friday and Monday off and, with the rule on, Saturday and Sunday count too: four days used instead of two. For annual leave under the OSH Code it cannot apply, because holidays within the leave period, or just before or after it, are not counted as leave. For casual or company leave it is a policy choice within your state's Shops and Establishments law: name the types it covers and write it down before it applies. ### Can earned leave be carried forward and encashed? Yes. For the workers the OSH Code covers, unused annual leave carries forward up to 30 days, days above that are paid out on the worker's demand at the year end, and all unused annual leave is encashed on exit. Your policy can set a higher cap. Casual leave usually lapses at the year end. Where your state's Shops and Establishments Act gives more, such as a higher carry-forward cap, keep the more generous rule until your lawyer confirms otherwise. ### Is sick leave mandatory for private companies? Most state Shops and Establishments laws require some paid sick or casual leave, but not all set them separately, and the number differs by state. Check the Act and rules where the person works; a company with people in two states may need two minimums. Above the minimum, it is your policy. ### How do we handle everyone asking for Diwali week? Publish next year's holiday list by December, then set a team cap: no more than a fixed share of a team off on the same working day, approved in the order requests arrive, with the cap shown on the request. Write it before October, not during it. ### What if someone leaves with leave taken in advance? If the policy allowed leave beyond the balance, the excess is recovered at F&F: first against any leave being encashed, then as loss of pay in the last salary. Write that into the policy when you allow advance leave, not at the exit. No. 07 Sources ## Where each rule comes from Annual leave rests on the OSH Code; casual and sick leave rest on your state's law. Check the state where the person works before you write a number into the policy. 1. [OSH Code, 2020, s.2(1)(v) ("establishment": 10 or more workers)](https://www.labour.gov.in/static/uploads/2025/07/36fcfa5d8e6b9145e282bf7b950d6c47.pdf) Ministry of Labour & Employment, in force 21 Nov 2025 · read 6 Oct 2026 primary 2. Occupational Safety, Health and Working Conditions Code, 2020, s.32 (annual leave with wages, carry forward, encashment)Government of India, in force 21 Nov 2025 · read 6 Oct 2026 primary 3. OSH Code, 2020, s.2(1)(zs) ("worker", and the ₹18,000 supervisory wage limit)Government of India, in force 21 Nov 2025 · read 6 Oct 2026 primary 4. [Each state's Shops and Establishments Act and rules (casual, sick and festival leave)](https://labour.gov.in/) State labour departments · read 6 Oct 2026 primary 5. [Code on Social Security, 2020, Chapter VI (maternity benefit)](https://www.labour.gov.in/static/uploads/2025/07/b0620548445580767b5c0d18c95c26f7.pdf) Ministry of Labour & Employment, in force 21 Nov 2025 · read 6 Oct 2026 primary [Checked by the LekhaHR team](https://lekhahr.in/editorial-policy/) · reviewed 6 Oct 2026 · next review by 31 Dec 2026. This guide explains the rule; it is not legal advice for your establishment. For employersLekhaHR is HR and payroll software for small Indian teams. [See leave management →](https://lekhahr.in/leave-management-system/)