Understanding Employee Leave Policies in India: A Comprehensive Guide

India's workforce is entitled to various types of leave, balancing employer discretion with statutory requirements. Navigating these regulations is crucial for multinational companies operating in this diverse market.

Annual Leave Entitlements

After completing 240 days of service, employees are guaranteed at least 15 days of paid annual leave. Many organizations negotiate additional days through employment contracts. For instance, SailGlobal's clients typically implement leave application processes requiring 15-day advance notice with managerial approval. Employees can generally carry forward unused leave, though caps exist—typically 30 days, with some states allowing up to 45-60 days under specific legislation.

Youth workers (under 15) receive more generous leave: one day for every 15 days worked (20 days annually) compared to adults' one day per 20 days worked (15 days annually).

Sick Leave Provisions

Employees accrue 5-12 days of sick leave annually, varying by state laws and company policies. Medical certificates are typically required for absences exceeding 2-3 days. Unlike annual leave, sick leave isn't usually carried forward or paid out upon termination. Compensation during sick leave ranges from 70% to 100% of average wages.

Maternity Leave Framework

The Maternity Benefit Act mandates 26 weeks of paid leave for women working at least 80 days in the 12 months preceding delivery. Leave can commence 8 weeks before delivery, with 6 weeks mandatory postpartum. This reduces to 12 weeks for the third child onward. Additional leave is provided for pregnancy-related complications. SailGlobal's compliance team ensures clients meet these requirements while managing extended unpaid leave options.

Paternity and Parental Leave

While not statutorily required for private sector employees, progressive companies often offer 1-4 weeks of paternity leave. Parental leave remains unregulated, though multinational corporations frequently introduce policies to remain competitive.

Adoption and Special Leave Types

Employees adopting children or using surrogacy arrangements qualify for up to 12 weeks of paid adoption leave. Bereavement leave (typically 2-5 days) and marriage leave (1-15 days) are employer-discretionary but widely practiced.

Compensatory Time and Unpaid Leave

Companies may offer compensatory leave instead of overtime pay for holiday work. Loss of Pay (LOP) leave provides unpaid time off after exhausting paid leave balances.

Public Holidays in India

India's holiday calendar includes national, state-specific, and restricted holidays. Multinational companies like those partnering with SailGlobal often develop holiday schedules accommodating regional diversity while maintaining operational continuity.

Holiday	2025 Date
Republic Day	January 26
Holi	March 14
Eid al-Fitr	March 31
Independence Day	August 15
Diwali	October 20
Christmas	December 25

Effective leave management requires understanding both legal requirements and local practices. SailGlobal's expertise helps international businesses implement compliant yet flexible leave systems that support employee wellbeing while maintaining productivity.

India Employee Leave Guide: Annual, Sick, Maternity Leave Policies 2025