Can I carry forward or encash unused leave?
- Up to thirty days of unused leave can be carried forward to the next year s. 32(1)(vii)(a).
- Leave you applied for and were refused carries forward without any limit s. 32(1)(vii)(b).
- You may ask to be paid for your leave at the end of the calendar year s. 32(1)(viii).
- When you leave a job, you are paid for the leave you had earned s. 32(1)(vi).
Last checked 1 Nov 2026 · written from the official text · not reviewed by a lawyer. This explains the law in general and does not decide your case.
What the Labour Ministry says
- “leave encashment is not a part of allowances.” FAQ 5, FAQs on Labour Codes, 30 Dec 2025: official copy · our copy
- “There is no prescribed maximum limit for leave encashment under the OSH&WC Code, 2020.” FAQ 26, Additional FAQs, 16 Mar 2026: official copy · our copy
- “At the time of separation from service, the worker is entitled to encash the leave to his/ her credit.” FAQ 26, Additional FAQs, 16 Mar 2026: official copy · our copy
This is the Ministry's explanation, not the law. Its FAQs and Handbook say the Codes prevail.