Leave accrual is how a leave balance builds up over the year rather than being credited all at once in January. Most Indian companies accrue leave monthly, on a pro-rata basis, so a new joiner or someone mid-year starts with a smaller balance that grows month by month rather than a full year’s allowance from day one.

How the math typically works

A common structure credits leave in fixed monthly instalments, for example 1.5 days of earned leave per month, working out to 18 days a year. The statutory version under labour law instead ties accrual to days actually worked, roughly 1 day of earned leave per 20 days worked. Either way, someone who joins in July accrues only the months from July onward, not a full year’s leave on their start date.

Frequently asked questions

Does accrual pause during unpaid leave?

Generally yes, since accrual is tied to active service or days worked, an extended unpaid period typically slows or pauses further accrual for that stretch.

Is accrual the same for every leave type?

No. Earned leave is the type most commonly accrued gradually; casual and sick leave are often credited as a flat annual allowance instead, without a monthly accrual mechanic.

Model accrual across leave categories with the Leave Accrual Calculator.