What Is Compensatory Off?
Compensatory off, commonly called 'comp off,' is paid time off granted to an employee in exchange for working on a designated off day — such as a weekly off, public holiday, or beyond scheduled working hours — instead of, or sometimes in addition to, monetary overtime pay.
Legal Basis for Comp Off in India
Comp off provisions are primarily governed by respective State Shops & Establishments Acts and the Factories Act, 1948, which mandate either overtime pay or compensatory rest for work performed beyond standard hours or on a designated rest day — the specific mechanism and applicability vary by state and employee category.
Typical Comp Off Rules Followed by Indian Companies
- Comp off is usually granted for a full day worked on a designated weekly off or public holiday, though some policies grant partial comp off for extended work hours on a regular working day
- Most policies require comp off to be availed within a defined window — commonly 30 to 90 days from when it was earned — after which it may lapse
- Approval is typically required both for working on the off day and for availing the resulting comp off, to maintain proper attendance and staffing records
Compensatory Off vs Overtime Pay
Overtime pay is a monetary payment, often at a premium rate (commonly 2x the normal rate under various state laws for factory workers), for hours worked beyond the standard limit. Comp off is time-based compensation — an equivalent day or partial day off — rather than direct monetary payment. Companies and applicable state laws determine which mechanism applies for a given category of work.
How HR Software Helps
An HRMS with a dedicated comp off tracking module automatically calculates comp off entitlement when an employee is marked present on a designated off day, tracks the expiry window, and flags unused comp off before it lapses.
See how Trilliant Software automates this →Compensatory Off (Comp Off): Frequently Asked Questions
Can comp off be encashed instead of taken as time off?
Does comp off apply to all employee categories?
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.