Earned leave calculation for the year

Hi community-

  • How to calculate earned leave per year?
  • How many days is earned leave calculated for?
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Hi Prabha,

Earned Leave, Sick Leave and Casual Leaves are governed by the Shops and Establishments Act of respective States.

So based on the organization’s location, the applicable State’s Shops Act has to be referred.

To understand the minimal number of earned leave (Annual Leave) prescribed under a particular state’s Shops Act, you have to refer to the Annual Leave with Wages section and compute in accordance with that.

For e.g.
EL for Karnataka is 1 day for every 20 days of work by the employee. On this basis you have to calculate.
EL for Andhra Pradesh is 15 days when the employee complete 240 days service during a continuous period of 12 months.
EL for Delhi is 15 days, yearly when employee complete service for a continuous period of 12 months
EL for Maharashtra is 1 day for every 20 days of work when employee complete 240 days service during a continuous period of 12 months

In this manner each state provides for the EL. For a quick reference, you can visit this link - Shops and Establishments Acts & Rules for Indian States - where we provide you with ready reckoner - scroll the state that you want to refer and you will get all the required details.

Hope this helps.

Regards,
Bhuvana Anand

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Hi Bhuvana,

You have said that:
EL for Maharashtra is 1 day for every 20 days of work when employee complete 240 days service during a continuous period of 12 months so does this mean that employee will start accumulating the leaves after completion of 8 months (240 days) in the organisation? And he/she will not be eligible for any EL in first 8 months?

Please clarify.

Thanks,
Deepti

1 Like

Hi Deepti,

Sorry, looks like I missed out your query.

Yes, the EL eligibility commence from the date of completion of 240 days service as 1 day for every 20 days of work.

But the other leaves such as the casual leave, sick leave to be provided as specified in the respective State Shops Act.

Regards,
Bhuvana Anand

1 Like