Paid Leave Types Offered by Companies to Employees in India

Paid leave types

If you are working in a recognized organization, you’ll have to put in a required amount of time and hard work for the organization’s growth and meet daily targets. Apart from this an employee is expected to follow some mandatory requirements. In return for their utility for the firm they get paid and in addition the employees are also entitled to a certain minimum number and types of paid leaves and paid public holidays to maintain a healthy work environment within the firm. 

This, apart from taking care of the personal needs and work-life balance of employees, ensures better productivity for organizations from the employees.

To provide employees with incentives of paid leaves, the central and state governments of India enacted certain laws, such as The Factories Act, Shops and Commercial Establishments Act etc. Apart from the mandatory leave types, companies provide several other leave types. While the specifics may vary from company to company, office leave types are almost the same everywhere.

In this blog post, we will explore the different types of paid leave that companies in India offer to their employees. We will also discuss the benefits and drawbacks of each type of leave. By the end of this post, you will have a better understanding of the paid leave options available to you in India.

Casual leave

Casual leave is a type of paid leave that is typically offered to employees in India by their employers. This leave can be used for any purpose, such as urgent personal demands, and does not need to be approved in advance. 

Employees are typically allotted a certain number of casual leaves per year, and the amount of leave may vary depending on the company’s policy. It is typically given at the discretion of the employer and does not accrue over time. Casual leave is typically granted for personal reasons or for short absences. 

It is not carried over from one year to the next. Most companies allow casual leaves of up to 3-5 days a month with the employer’s approval.

Such leaves may include half day or full day off from work to tackle urgency. But casual leaves cannot be carried forward and cannot be encashed by the employees. Also, there is no need for advanced permissions to avail casual leaves.

Earned/ privilege/ vacation leave

Earned leave is also known as annual leave or privilege leave or vacation leave, and is the leave that accrues to an employee based on the number of days of service with a company. For example, an employee who has worked for a company for 5 years may be entitled to 30 days of earned leave per year, although the minimum number of working days to avail privilege depends more on the company’s leave policy.

Earned leave that is balance can be carried forward to the next year or can also be exchanged with cash payments by the company to the employees. The basic salary is usually considered as the unit of exchange to encash leaves. In some organizations, gross income is considered instead of basic salary. Such leaves have to be asked for beforehand or in advance so that the company’s schedule can be taken care of and doesn’t get hampered by the absence of employees.

Sick/ medical leave

When an employee is suffering from an illness or injury, they may be entitled to take sick leave. This type of leave allows them to take the time off work they need to recover without having to worry about losing pay. However, some states like Tripura allow 50% payment of salary during sick leaves. Besides, in some states like Delhi, there is a combined entitlement for both casual and sick leaves.

In India, the entitlement to sick leave varies depending on the company. Some companies offer a set amount of days that employees can take per year, while others offer unlimited sick leaves. However, most companies will require employees to provide a doctor’s note or a medical certificate if they are taking an extended period of time off work.

Sick leave can be used for a variety of purposes, such as, to recover from an illness or injury, to take care of a family member who is ill or injured, to attend medical appointments, or to deal with the aftermath of a traumatic event.

Maternity leave

In India, paid maternity leave for women was mandated by law in 1961, Maternity Benefit Act, to manage maternity or postpartum. The amount of paid maternity leave varies by company, but is typically around 3-6 months. Women may use maternity leaves in case of miscarriages, abortions, adoption, surrogacy, or tubectomy also. However, the leave applicable during postpartum of first two children only. In case of third child, a leave of 12 weeks can be availed with permission of the employer.

Paid maternity leave is a great benefit for expectant mothers. It allows them to take the time they need to recover from childbirth and bond with their new baby without worrying about work. As per the law, women employees can extend their maternity leave for up to 16 months without termination. However, it is at the company’s sole discretion to decide how many days of this duration will be unpaid.

While paid maternity leave is a great perk, it’s not always possible for mothers to take advantage of it. Some companies require that employees give birth in a certain hospital or use a specific doctor in order to be eligible for paid maternity leave. Others have strict policies about how much notice must be given before going on leave. And some simply don’t offer the benefit at all.

If you’re pregnant and considering your options for paid leave, be sure to check with your employer to see what they offer. And if you’re not happy with their policy, don’t hesitate to negotiate for something better!

Paternity leave

Similar to maternity leaves for women, males are entitled to paternity leaves. In India, paternal leave is not a statutory requirement, but many companies offer it as part of their employee benefit packages. Paternal leave allows fathers to take time off from work to bond with their newborn child and take care of them in the early stages of life.

Paternity leave typically lasts for 2-3 weeks and is paid out at the same rate as the father’s normal salary. Some companies also offer extended paternity leave periods of up to 6 months, although this is less common. It is nowadays also known as the new parents leave to include LGBT and qeer community members.

Taking care of a new born is genuinely a tough task and needs to be given a certain amount of attention. Fathers who take paternity leave are often able to take advantage of bonding time with their child, which can be beneficial for both the father and the child. In addition, paternity leave can help to reduce stress levels for new fathers, and allow them to better adjust to their role as a parent.

Bereavement leave

Bereavement leave is a type of paid leave that companies offer to employees who have lost a close family memberbor a loved one. This type of leave is used in case of demise of a beloved, to perform or attend their last rites, and most importantly for grieving and overcoming from the trauma. Bereavement leaves may also be used to stay with and take care of a closed relative who is injured or ill and hence is dependent on others for daily chores.

As no laws are making it mandatory to offer such leaves, most companies provide bereavement leaves on the ground of compassion. Bereavement leave typically lasts for 3-5 days, but may be extended depending on the company’s policy.

Sabbatical leave

Sabbatical leave is a type of paid leave that allows employees to take an extended break from work, usually for a period of 1-2 years. This type of leave can be used for education, travel, personal development, or simply to take some time off from the rat race.

Although sabbatical leave is not mandatory in India, many companies offer this benefit to their employees as it can be beneficial for both the employee and the company. For the employee, it allows them to explore new interests or recharge their batteries, and for the company, it can help retain talented staff who might otherwise leave. However, sabbatical leaves are not approved immediately, so employees need to plan them.

If you’re considering taking a sabbatical, be sure to talk to your employer about their policy and what options are available to you.

Marriage leave

In India, marriage leave is a common type of paid leave that companies offer to employees who are getting married. This leave can be used for wedding preparations, honeymoon, or other activities related to the marriage. It is typically granted for a period of 15 days.

Marriage leave is a great benefit for employees who are about to get married. It allows them to take care of all the wedding preparations and enjoy their honeymoon without having to worry about work. This type of leave can be very helpful in reducing stress levels during this already chaotic time. However, its eligibility is for only once during the employee’s entire employment period. Marriage leave is provided only for the first legal marriage of the employee and not in case of multiple marriages or remarriage.

Compensatory off

Compensatory off, also known as comp-off, is a type of paid leave that employers in India can offer to employees. This leave can be used to make up for extra hours worked during weekends or on a holiday, or for time lost due to strike action or other circumstances. Comp-off leaves are typically granted at the employer’s discretion, and are not guaranteed by law. These are provided as a kind of appreciation for the employees’ hardwork and to keep them motivated.

But Compensatory offs come up with an expiry period generally of 2-8 days and must be used within the specified number of days as these cannot be carried forward.

Menstruation leave

In India, many progressive companies offer their employees paid leave for menstruation. This leave is typically one to three days per month and can be used for any purpose, including managing period symptoms or resting.

While some companies have always had this benefit in place, it has become more common in recent years as menstrual health becomes more widely recognized as a legitimate issue that can impact work performance. Not yet common in India, but some of the large companies offer menstruation leave to their employees, such as Swiggy, Zomato, and Byjus.

The bill proposed by the central Indian government regarding menstrual leave for women is not yet passes, however, women of some states like Bihar already enjoy the benefit of menstruation leave, thanks to the state governments.

There is still some debate over whether or not menstrual leave is truly necessary, but there is no doubt that it can be helpful for those who need it. If your company offers this benefit, be sure to take advantage of it if you need it!

Public holidays

India is a country with a rich and diverse culture. One of the things that makes India so unique is the variety of festivals which are considered as public holidays by the central and state governments of India that companies offer to employees. From mandatory national holidays to religious festivals, there are many opportunities for employees to take advantage of paid leave. Events like Independence Day, Republic Day, Diwali, Holi, October 2nd, etc., are public holidays in India. Companies are obliged to let employees take off these days.

But if for some reasons, on these national holidays if the employers wish to keep their organization functional, they need to obtain prior permission from concerned authorities.

Leave for election for Parliament and state assemblies

During the general elections in the country or the state where the employee is residing they are eligible for leave on the polling day. For general elections of Lok Sabha and Vidhan Sabha or any of the bye election one day leave is been declared to all employees for the polling day.

This is to encourage the working population to vote and to ensure large participation in voters in elections, so that a deserving candidate can be chosen by people’s will.


The above article deals with detailed analysis of different types of paid leaves that must be offered by the employers to working employees in India. You must be aware of all these kinds of incentives and privileges your firm offers to employees in order to benefit from those. The Indian central and state governments have come up with several kinds of labour laws which ensure, to some extent, a healthy work environment and work-life balance for the employees, and paid leaves are one of those. Certain day-offs can also have perks.

If employees don’t utilize them by the end of the year, they can be encashed or carried forward. Apart from the above mentioned leaves, many organizations offer other kinds of paid leaves such as birthday leave, quarantine leave, commuting leave, etc., as perks to their employees in order to keep them motivated to work and provide their best utility.

The above article contains information about the types of paid leaves generally offered by organizations, however, employees must go through the leave policy of the organization so as to avoid any kind of confusion regarding rules about paid and unpaid leaves practiced in that particular firm.

About the Contributor

Shruti Pandey

Shruti, a graduate researcher from Delhi University is an exuberant writer and editor who has penned authentic facts and her own thoughts for various organizations. By devoting oodles of her time to read upon the topics, she proves to be competent to deliver knowledgeable content for the audience. Currently being a dedicated intern at she offers bona fide pieces of compositions to apprise her readers about diverse subjects.

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