Encashable leave
Leave Accrual Calculator: Earned Leave Under the OSH Code: This free leave accrual calculator works out the annual leave with wages (earned leave) a worker earns in a calendar year under Section 32 of the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code). It shows:
- whether the worker is eligible: 180 days, or one-fourth of the remaining days for a new joiner;
- leave earned at 1 day for every 20 days worked (15 for adolescents and below-ground mine workers);
- the closing balance, carry forward up to 30 days and the excess that can be encashed;
- the leave payable, with its value, when an employee leaves.
For a company policy such as 18 days a year, choose Company policy to accrue leave month by month.
Earned Leave Rules Under the OSH Code (Section 32)
| Rule | What the Code says |
|---|---|
| Eligibility | Worked 180 days or more in the calendar year |
| Rate | 1 day for every 20 days of work; 1 for every 15 days for an adolescent worker or a worker below ground in a mine |
| Days counted for 180 | Layoff, maternity leave and annual leave taken count towards the 180 days, but no leave is earned for them |
| Holidays | Holidays falling within the leave are not counted as leave taken |
| New joiner | Joined after 1 January: entitled if they worked one-fourth of the remaining days of the year |
| Carry forward | Up to 30 days in total; leave applied for and refused can be carried forward beyond this |
| Encashment | The worker can ask to encash leave at the end of the calendar year; leave above 30 days can be encashed |
| On leaving | Unused leave is paid even without 180 days: within 2 working days on resignation, discharge or dismissal; within 2 months on retirement or death |
The OSH Code came into force on 21 November 2025. Section 32 covers establishments within the Code; shops and other establishments under a state Shops and Establishments Act, and many company policies, may give different or more leave. Follow the rules that apply to your establishment.
Leave Accrual Formula
Leave is earned for each complete 20 days, so 250 days gives 12 days of leave, with 10 days counted towards the next one. For a company policy, leave earned = days a year × completed months ÷ 12.
Leave Accrual Example (Calculator Default)
A worker in 2026 worked 250 days and had 10 days of annual leave. Opening balance 25 days, leave availed 5 days, monthly wages ₹30,000.
| Step | Working | Result |
|---|---|---|
| Eligibility | 250 worked + 10 counted = 260 days (180 needed) | Eligible |
| Leave earned | 250 ÷ 20, full days | 12 days |
| Closing balance | 25 + 12 − 5 | 32 days |
| Carry forward | Limit 30 days | 30 days |
| Excess over the limit | 32 − 30 | 2 days |
| Value of excess | ₹30,000 ÷ 26 = ₹1,153.85 a day × 2 | ₹2,308 |
New Joiner Example
A worker joins on 1 October 2026. The remaining days in the year are 92 (31 + 30 + 31), so one-fourth is 23 days. If they work 60 days by 31 December, they qualify and earn 60 ÷ 20 = 3 days of leave. If they worked only 20 days, they would earn no leave for 2026.
Leave When an Employee Leaves
If a worker resigns, is discharged or dismissed, retires or dies during the year, they (or their nominee or heir) are paid wages for the unused leave, even if they did not complete 180 days. The payment is due within 2 working days for resignation, discharge or dismissal, and within 2 months for retirement or death. Include it in the full and final settlement. To work out the tax exemption on leave encashment at retirement or resignation, use the leave encashment calculator.
Accrued Leave vs Leave Balance vs Encashable Leave
- Accrued (earned) leave: the leave earned in the current year from days worked.
- Leave balance: opening balance plus leave earned, less leave taken and encashed.
- Carry forward: the part of the balance moved to the next year, up to 30 days, plus any leave refused by the employer.
- Encashable leave: the balance above the carry-forward limit, or leave the worker asks to encash at year end; on leaving, the full balance.
How to Use This Leave Accrual Calculator
- Open Leave rule: choose 1 per 20 days, 1 per 15 days, or Company policy (enter days a year). Check the carry-forward limit.
- Open Work this year: enter the year, the joining date if they joined during the year, whether they left, days actually worked, and layoff, maternity and annual leave days. For company policy, enter completed months.
- Open Leave balance: enter the opening balance, leave availed, leave refused, leave encashed, and monthly wages with the per-day basis to see the value.
- Read leave earned, closing balance, carry forward and encashable leave, or the leave payable on leaving. Use Copy for your leave register.
Frequently Asked Questions
How is earned leave calculated under the new labour code?
Under Section 32 of the OSH Code, a worker who works 180 days or more in a calendar year earns 1 day of leave for every 20 days of work. 250 days worked gives 12 days.
How many days must I work to earn annual leave?
180 days in the calendar year. Layoff, maternity leave and annual leave taken count towards the 180 days. A new joiner needs one-fourth of the remaining days of the year.
Do leave days count towards the 180 days?
Yes. Layoff, maternity leave and annual leave taken count for the 180-day condition, but no leave is earned for those days.
How much leave can be carried forward?
Up to 30 days in total. Leave that the worker applied for and the employer refused can be carried forward beyond 30 days.
What happens to leave above 30 days?
The worker can encash it. The worker can also ask to encash leave at the end of the calendar year.
How is leave calculated for a new joiner?
If they join after 1 January and work at least one-fourth of the remaining days of the year, they earn 1 day for every 20 days worked. Joining on 1 October leaves 92 days, so 23 days of work are needed.
Is unused leave paid on resignation?
Yes. Wages for unused leave are paid within 2 working days of resignation, discharge or dismissal, even if 180 days were not completed.
Are holidays counted as leave?
No. Holidays falling within a period of leave are not counted as leave taken under Section 32.
What is the earned leave rate for adolescent workers?
1 day for every 15 days of work. The same rate applies to workers employed below ground in a mine.
How do I calculate leave accrual per month for a company policy?
Divide the yearly leave by 12 and multiply by completed months. 18 days a year is 1.5 days a month, so 5 months gives 7.5 days.