If you have just accepted a job offer or are reviewing your current employment contract, the leave clause is one of the most important sections to read carefully. India does not have a single uniform national leave law — your entitlement depends on which state you work in, which industry you are in, and which legislation applies to your employer. But the broad framework is consistent, and the new Labour Codes notified in 2025–2026 are bringing significant standardisation. Here is a practical breakdown of every leave type, what the new codes change, and how to calculate what you are owed. Types of Leave in India for Private Sector Employees Most salaried employees in India are entitled to three core types of leave under state-level Shops and Establishments Acts or the Factories Act: Earned Leave (EL) — Also Called Annual Leave or Privilege Leave Earned leave is the most valuable leave type because it is the only one you can carry forward to the next year and encash when you resign or retire. Accrual rate: 1 day for every 20 days worked (under the new OSH Code, operative from 2026). Under older state acts, this was often 1 day per 20

Complete state-by-state minimum wage guide for India 2026. Delhi: ₹19,846/month. Maharashtra: ₹14,638/month. Know your rights, the 50% basic pay rule, and employer obligations under the new Code on Wages.