Contents of the OSH Code

The Occupational Safety, Health and Working Conditions Code, 2020

Section 32. Annual leave with wages, etc

In force since 21 Nov 2025Chapter VII — Hours of Work and Annual Leave with Wages

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In simple words

  • A worker who works one hundred and eighty days or more in a calendar year earns annual leave with wages s. 32(1)(i).
  • Leave is earned at a day for every twenty days of work, or a day for every fifteen days for adolescent workers and workers below ground in mines s. 32(1)(ii).
  • Up to thirty days of unused leave carries forward, and a balance above thirty days may be encashed s. 32(1)(vii)(a), (ix).
  • On leaving, a worker is paid for leave due before the second working day, or within two months after superannuation or death s. 32(1)(vi). See the annual leave guide.

An explanation, not the law. The official text below prevails.

Official text

(1) Every worker employed in an establishment shall be entitled for leave in a calendar year with wages subject to the following conditions, namely:—

(i) that he has worked one hundred and eighty days or more in such calendar year;

(ii) that he shall be entitled for one-day leave for every twenty days of his work, in the case of adolescent worker for fifteen days of his work, and in case of worker employed below ground mine, at the rate of one day for every fifteen days of his work, in such calendar year;

(iii) any period of layoff, maternity leave or annual leave availed by such worker in such calendar year shall be counted for calculating the period of one hundred and eighty days or more under clause (i), but he shall not earn leave for the period so counted;

(iv) any holidays falling between the leave availed by such worker (in a calendar year or prefixed or suffixed holiday) shall be excluded from the period of leave so availed;

(v) in case of such worker whose service commences otherwise than on the first day of January shall be entitled to leave with wages at the rate specified in clause (ii), if he has worked for one-fourth of the total number of days in the remainder of the calendar year;

(vi) in case such worker is discharged or dismissed from service or quits employment or is superannuated or dies while in service, during the course of the calendar year, such worker or his heir or nominee, shall be entitled to wages in lieu of the quantum of leave to which such worker was entitled immediately before his discharge, dismissal, quitting of employment, superannuation or death, calculated as specified in preceding clauses, even if such worker has not worked for the required period under this sub-section making such worker eligible to avail such leave, and such payment shall be made—

(a) where such worker is discharged or dismissed or quits employment before the expiry of the second working day from the date of such discharge, dismissal or quitting; and

(b) where such worker is superannuated or dies while in service, before the expiry of two months from the date of such superannuation or death;

(vii) if such worker does not in any one calendar year take the whole of the leave allowed to him under this sub-section and the rules made thereunder, then, any leave not taken by him shall be added to the leave to be allowed to him in the succeeding calendar year so that—

(a) the total number of days of leave that may be carried forward to a succeeding year shall not exceed thirty days; and

(b) such worker, who has applied for leave with wages but has not been given such leave in accordance with this sub-section and the rules made thereunder shall be entitled to carry forward the leave refused without any limit;

(viii) without prejudice to clause (vi) such worker shall be entitled on his demand for encashment of leave at the end of calendar year;

(ix) such worker shall be entitled, where his total number of leave exceeds thirty days under sub-clause (a) of clause (vii), to encash such exceeded leave.

(2) The appropriate Government may, by notification, extend the provisions of sub-section (1) to any other establishment except railway establishment.

(3) The provisions of sub-section (1) shall not operate to the prejudice of any right to which a person employed in a mine may be entitled under any other law or under the terms of any award, agreement or contract of service:

Provided that if such award, agreement or contract of service, provides for longer annual leave with wages than that provided in sub-section (1), the quantum of leave, which the person employed shall be entitled to, shall be in accordance with such award, agreement or contract of service but leave shall be regulated in accordance with the provisions of sub-section (1) with respect of matters not provided for in such award, agreement or contract of service:

Provided further that where the Central Government is satisfied that the leave rules applicable to persons employed in any mine provide benefits which in its opinion are not less favourable than those provided for in sub-section (1) it may, by order in writing and subject to such conditions as may be specified therein exempt the mine from all or any of the provisions of sub-section (1).

Source: The Occupational Safety, Health and Working Conditions Code, 2020, Act No. 37 of 2020 — Gazette of India, pp. 30–31 of the PDF. Open our copy at p. 30 · official download · all sources

What the Labour Ministry says

  • “Leave provisions apply to workers as per the OSH & WC Code, 2020 and only to those supervisors having wage not exceeding Rs 18,000/ per month.” FAQ 20, Additional FAQs, 16 Mar 2026: 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
  • “However, an employee is entitled to benefits under State Law if more favourable to him than those under the Code.” FAQ 25, 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.

Explained simply in: Annual leave with wages guide · Leaving a job guide

Compliance obligations under this provision

Commencement In force since 21 Nov 2025

Notification wording (1)
  • S.O. 5321(E), in force from 21 Nov 2025: “the Central Government hereby appoints the 21st day of November, 2025 as the date on which the provisions of the said Code, shall come into force”