Leave & attendance · Updated September 2026
Earned leave, also called privilege leave, is paid time off that builds up with actual service rather than being granted as a flat annual allowance. It’s the leave type most closely tied to statute in India, and the one most commonly eligible for encashment.
Under the Factories Act framework, now consolidated into the Occupational Safety, Health and Working Conditions Code, 2020, adult workers accrue 1 day of earned leave for every 20 days worked, working out to roughly 15 days a year for someone working close to full-time. The qualifying period to earn this entitlement has actually been lowered under the new Code, from 240 days worked in the previous year down to 180 days. Note that the OSH Code’s “worker” definition specifically excludes managerial and supervisory staff earning above a set wage threshold, so this statutory accrual formula doesn’t automatically apply to every salaried employee; many companies apply a similar or more generous accrual as a matter of policy regardless.
No. It’s typically capped, commonly around 30 days for adult workers under the statutory framework, with company policy often setting its own cap. See our note on leave carry-forward for how the cap interacts with mandatory encashment of anything beyond it.
Functionally yes, in most usage; “earned leave,” “privilege leave” and “annual leave” are used somewhat interchangeably across different companies and states.
Generally not, since accrual is tied to days actually worked, so an extended unpaid absence typically pauses further accrual for that period.
Track leave accrual with the Leave Accrual Calculator and check your current balance with the Leave Balance Calculator.