A practical benchmark for annual, sick and casual leave — and how to write a policy employees actually understand.
There's no single legal number that applies to every business in India — leave entitlements are shaped by state-specific rules and company policy. This isn't legal advice, but here's a practical way to think about it. Confirm minimums with a compliance advisor for your state.
Many small businesses land around 12–18 total paid leave days a year across these categories — but state rules and industry norms both shift this number, so treat it as a starting point, not a rule.
Ambiguity — not the number itself — is what causes disputes. A written policy that says exactly how many days of each type, and how carry-forward works, prevents most leave arguments before they start.
Will unused leave roll over, expire, or be paid out? Pick one and apply it consistently every year-end.
Whatever the entitlement, keep the paid-vs-unpaid distinction clean — see paid vs unpaid leave for how that connects to pay.
A generous policy that's inconsistently applied feels worse to employees than a modest policy applied fairly every time.
Many small businesses in India offer somewhere around 12-18 paid leave days a year split across annual/earned leave, casual leave and sick leave, though exact entitlements vary by state shop and establishment rules and company policy.
Minimum leave entitlements are typically governed by state-specific Shops and Establishments Acts and can vary by state and employee tenure, so a business should confirm the applicable minimum with a compliance advisor rather than assume a single national number.
Many companies allow a capped number of unused leave days to carry forward, with the rest lapsing or being encashed, but this is a policy choice — write it down clearly so employees know what to expect.
Merik lets you set each employee's leave balance by type, tracks approvals and remaining balance automatically, and feeds paid/unpaid days straight into monthly payroll — so whatever policy you choose, it's applied the same way every time. See work-from-home policy or explore features.
A simple WFH policy template that's easy to enforce.
Clearing up the confusion so your leave policy stays consistent.
The 50% wages rule, fixed-term gratuity, 180-day leave, wages by the 7th — decoded.