Trilliant Software Pvt Ltd

HR Glossary · H Leave Management

Holidays — Meaning, Types & Rules for Indian Employees

What are holidays in an HR context? Understand their meaning, types, and the key rules governing paid holidays for employees in India.

By Trilliant Software Team 2 min read Updated Sep 2026

What Are Holidays?

Holidays Meaning in HR India

Holidays, in an HR context, refer to designated non-working days — typically national, religious, or festival occasions — during which employees are entitled to paid time off, distinct from leave, which employees actively apply for and use from their personal leave balance.

Types of Holidays

  • Mandatory/Gazetted holidays — legally mandated days off applicable across specific jurisdictions
  • Restricted holidays — a set of optional festival days from which employees select a limited number
  • Floating holidays — flexible days off employees can use at their discretion on any date

Holidays vs Leave — Key Distinction

Holidays are pre-determined, company-wide non-working days applicable to all (or most) employees uniformly. Leave (Casual, Earned, Sick) is individually applied for and deducted from a personal leave balance, used at the employee's discretion for personal reasons beyond the fixed holiday calendar.

How HR Manages Holiday Compliance

  • Publishing a location-specific holiday calendar compliant with applicable state minimum requirements
  • Ensuring holiday pay and compensatory arrangements are correctly processed for employees required to work on a designated holiday
  • Regularly reviewing and updating the holiday calendar based on any changes in state-notified holidays

Holidays: Frequently Asked Questions

What is the minimum number of paid holidays mandated in India?
This varies by state under the respective Shops & Establishments Act, but many states mandate a minimum of around 8-10 paid holidays annually, including specific national holidays, though exact requirements should be verified against current state-specific regulations.
Can a company deduct a holiday from an employee's leave balance?
No, designated holidays are separate from and in addition to an employee's leave entitlement — deducting a holiday from leave balance would generally be non-compliant with standard practice and applicable state regulations.

This glossary entry is for general information and reflects common HR practice in India at the time of writing. Statutory thresholds, rates and deadlines change — verify against the latest official notifications or consult a qualified legal or tax advisor before acting.