Leave carry-forward decides what happens to leave you didn’t use this year: does it roll into the next year, get paid out, or simply disappear. The answer depends heavily on which type of leave you’re asking about.

How it typically works

Under the Factories Act framework, now folded into the Occupational Safety, Health and Working Conditions Code, 2020, unused earned leave can generally be carried forward up to a statutory cap, commonly around 30 days for adult workers. A newer feature of the OSH Code framework: leave accumulated beyond that cap is meant to be encashed rather than simply forfeited, which shifts the old assumption that excess leave just disappears. One notable exception exists in both the old and new framework: leave that was validly applied for but refused by the employer can carry forward without the usual limit.

Casual leave and sick leave are a different story entirely; most company policies let these lapse at year end with no carry-forward at all, since carry-forward and caps for these leave types are policy decisions, not something statute mandates.

Frequently asked questions

Is leave carry-forward the same everywhere in India?

No. The statutory cap applies specifically to earned leave for workers covered under the relevant code; company policy and state rules can vary the details, so check your specific policy rather than assuming a single national number.

What happens to leave beyond the carry-forward cap?

Under the newer OSH Code framework, it’s meant to be encashed rather than forfeited, a change from how excess leave was often handled previously.

Does carry-forward apply to comp-off?

Comp-off runs on its own, usually shorter, validity window, generally 30 to 90 days, rather than the annual carry-forward cycle that applies to earned leave.

Track accumulated balances with the Leave Balance Calculator.