Earned Leave

Earned Leave is a statutory leave type under various Indian labor laws, including the Factories Act, 1948, and the Shops and Establishments Acts of different states. Employees typically accrue 15 to 18 days of earned leave per year based on days worked, and unused leave can generally be carried forward — often up to a maximum bank of 30 to 45 days depending on company policy. Upon resignation or retirement, employees are entitled to encashment of their accumulated earned leave balance. Unlike casual or sick leave, earned leave requires prior approval and is typically used for planned vacations and personal matters requiring longer absence.

What is the difference between earned leave and casual leave in India?

Earned leave (also called privilege leave) is accrued based on days worked and can be carried forward or encashed. Casual leave is for unplanned absences and typically lapses at year-end. Earned leave requires prior planning and approval, while casual leave is for unexpected needs.

Can earned leave be encashed in India?

Yes, earned leave can be encashed in India, typically upon resignation, retirement, or as permitted by company policy during employment. The encashment value is based on the employee's current salary.