A restricted holiday, often shortened to RH, is a distinctly Indian workplace concept: instead of the office closing for every regional festival, employees choose a limited number from a pre-approved list, and the office otherwise stays open on those days.

How it works

Rooted in state Shops and Establishments Acts, restricted holidays give employees flexibility to observe the festivals relevant to them, rather than forcing a single fixed calendar on a workforce that may celebrate different regional or religious occasions. Companies typically publish a list of 10 to 15 optional festival days each year, and employees pick a small quota from it, commonly 2, sometimes up to 3, to actually take as paid time off. Anyone not opting in on a given day simply works as normal.

Frequently asked questions

How is a restricted holiday different from a gazetted or national holiday?

A gazetted or national holiday closes the office for everyone. A restricted holiday is optional and individual, chosen from a list, with the office remaining open for anyone who doesn’t opt in.

Does an unused restricted holiday carry forward or get encashed?

Generally no. Most companies treat the RH quota as a use-it-or-lose-it allowance for the year, similar to casual leave.

Who decides which festivals go on the restricted holiday list?

Employers typically set the list annually, often informed by regional festival calendars and past employee requests, and it can vary from one office location to another within the same company.

See how holidays factor into monthly pay calculations with the Working Days Calculator.