What Is Paid Leave?
Paid leave refers to any category of authorized time off from work during which an employee continues to receive their regular salary — encompassing Earned Leave, Casual Leave, Sick Leave, and statutory leaves like Maternity Leave, as distinct from unpaid leave (Leave Without Pay).
Types of Paid Leave in India
- Earned Leave (EL) — accrued based on service, typically carries forward and is encashable
- Casual Leave (CL) — for short-term, unplanned personal needs
- Sick Leave (SL) — for illness or medical conditions
- Maternity Leave — 26 weeks paid leave for eligible women employees under the Maternity Benefit Act
- Compensatory Off — paid time off in exchange for working on a designated off day
- Bereavement Leave and other discretionary paid leave categories companies may offer
Legal Framework for Paid Leave
Paid leave entitlements are primarily governed by respective State Shops & Establishments Acts, the Factories Act, 1948, and specific statutes like the Maternity Benefit Act, 1961 — with exact entitlements varying meaningfully by state and applicable law.
Why Understanding Paid Leave Matters
- Ensures employees understand their full entitlement and how to use it appropriately across different leave categories.
- Helps HR maintain accurate, compliant leave policy documentation and payroll processing.
- Different paid leave types have different rules around carry-forward, encashment, and documentation requirements, making clear communication essential.
How HR Software Helps
An HRMS with configurable, state-specific leave policies ensures accurate tracking of each paid leave category's accrual, balance, and applicable rules, reducing manual administration burden and compliance risk.
See how Trilliant Software automates this →Paid Leave: Frequently Asked Questions
Is paid leave a legal right for all employees in India?
What happens when an employee's paid leave balance runs out?
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.