Leave policy best practices for India
A common-sense policy structure that satisfies the Shops & Establishments Act in most states.
Recommended structure
Earned Leave (EL) / Privilege Leave
- 18-24 days per year
- Accrues 1.5-2 days per month worked
- Encashable on exit
- Can carry forward up to 30 days (varies by state)
Casual Leave (CL)
- 7 days per year
- Doesn't carry forward, doesn't encash
- For one-off needs (medical visits, family events)
Sick Leave (SL)
- 10-12 days per year
- May or may not require a medical certificate (your call beyond 3 days)
- Some states (TN) mandate SL — check your state act
Maternity Leave
- 26 weeks (statutory under Maternity Benefit Act, 1961)
- Plus 12 weeks for adoption / commissioning mother
- Fully paid
Paternity Leave
- Not mandated by law. Many companies offer 5-15 days.
Bereavement
- 5 days for immediate family
- 1-3 days for extended
State-specific notes
- Karnataka: 1 day SL per month of service is mandated
- Maharashtra: 21 days EL minimum
- Delhi: 15 days EL minimum
- Tamil Nadu: 12 days SL mandated
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