The Factories Act of 1948 stipulates that each worker or employee who has worked a least 240 days in a

calendar year is entitled to 12 working days of paid leave or annual leave. For adult and juvenile
employees, paid or earned leave time durations vary (under the age of 15 years).

Earned Leave or Privileged Leave

Employees may earn privileged leave when they remain with an organization for a specific period. For
example, some companies offer one leave per 23 working days. This type of leave can be taken by staff
without deductions to their salary and with management approval (except in case of emergency). This
leave can also be cashed out if desired.

Casual Leave
Casual leave in India is intended for brief periods of rest and requires prior approval from the
management. Employees typically have access to three to seven consecutive days of casual leave,
although this can vary across employers and industries.

Sick Leave
Employees in India who make less than 21,000 INR per month may be eligible to receive sickness or
disability benefits through the Employees’ State Insurance Act. Generally speaking, casual and sick leave
policies in India range between five and 12 days each year. It is important to note that these leaves
cannot usually be accumulated into upcoming years. Moreover, employers might expect proof of illness
if an employee needs a longer leave period than what is customary; this typically involves providing a
medical certificate.

State governments can establish individual annual leave policies (which may include both casual and sick
leave) ranging from one day for every 20 days worked to 15 total vacation days annually throughout the
calendar year — which can also often be taken in no more than three portions within the said time
frame.

Leave Without Pay

When an employee has used all their allotted leaves but still requires more days off, the additional time
away from work can cause a salary reduction. This is known as "leave without pay." If applicable,
employees may be able to apply this leave toward future absences allowed by the leave policy.

1.National / Festival holidays In keeping with the National and Festival Holidays Act, India
employees will be paid 10 days per calendar year as holidays
The ESIC has fixed the contribution rate of the employees at 0.75% of their wages and the employer's
contribution at 3.25% of the wages for FY 2023-24.

Employer's contribution to the EPF account of an employee is exempt upto 12% of the PF Salary.