Delhi NCR HR Compliance Resource

Delhi Leave Policy 2026

Leave entitlements for Delhi companies under the Delhi Shops & Establishments Act 1954: privilege, casual, sick and maternity leave, carry-forward and encashment rules, plus a ready-to-use policy template you can adapt today.

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The Legal Basis

Which Laws Govern Leave in Delhi

Leave for employees in Delhi is set by one main state law plus two central laws. Your policy must meet the minimum in each that applies to your establishment.

Delhi Shops & Establishments Act 1954

The primary law for shops, offices and commercial establishments in Delhi. Section 22 fixes privilege, casual and sick leave minimums.

Factories Act 1948

Central law for factories. Workers get one day of earned leave for every 20 days worked, after 240 days in a year.

Maternity Benefit Act 1961

Central law. 26 weeks of paid maternity leave for the first two children, 12 weeks from the third child onward.

Statutory Minimums

Leave Entitlements Under the Delhi Shops Act

These are the legal minimums for commercial establishments in Delhi. You can offer more, never less.

Leave Type	Entitlement	Key Rules
Privilege / Earned Leave	15 days per year	Earned after 12 months of continuous service (5 days for every 4 completed months). Can be accumulated up to 3 times the annual entitlement, that is a maximum of 45 days.
Casual & Sick Leave	12 days per year	One day of casual leave for every completed month of service. Cannot be carried forward or encashed.
Maternity Leave	26 weeks	Paid leave for the first two children under the central Maternity Benefit Act; 12 weeks from the third child.
National Holidays	3 mandatory	Republic Day, Independence Day and Gandhi Jayanti are compulsory paid holidays, plus festival holidays notified by Delhi.
Watchmen / Caretakers	30 days privilege	Watchmen and caretakers exempted under Section 4 get not less than 30 days privilege leave after 12 months.

How leave encashment is usually calculated

Unavailed privilege leave is encashable, commonly at (Basic + DA) ÷ 26 × number of unused PL days. Casual and sick leave are not encashable. Pair this with our Delhi Minimum Wages and Delhi Holiday Calendar pages for a complete picture.

Beyond the Minimum

Optional Leaves Delhi Companies Commonly Offer

Not legally required for private firms, but standard in competitive Delhi NCR workplaces.

Paternity Leave

No statutory entitlement for private-sector employees (central government grants 15 days). Most modern firms offer 5 to 15 days by policy.

Bereavement & Marriage

Typically 3 to 5 days each, defined entirely by company policy.

Compensatory & Wellness

Comp-off for work on holidays and a few wellness or work-from-home days are increasingly common retention perks.

Stay Compliant

Common Leave Compliance Mistakes

Delhi Labour Department inspectors check leave records during the same audits they use to verify your statutory filing deadlines. These are the slip-ups that trigger notices.

Giving less than the statutory minimum

A contract cannot offer fewer than 15 PL and 12 casual/sick days. Any clause below the Act is void.

Lapsing privilege leave wrongly

PL must be allowed to carry forward up to 45 days. Forcing a full reset every year breaches the Act.

Not maintaining a leave register

Establishments must keep accurate leave records, produced on demand during inspection.

Denying maternity benefit

26 weeks is a central mandate and applies regardless of company size or the employee being on probation.

Ready to Use

Free Delhi Leave Policy Template

A clean, editable leave policy aligned to the Delhi Shops & Establishments Act 1954. Fill in your company name, adjust optional leaves, and roll it out. Ready for your handbook and labour audits.

Quick Answers

Frequently Asked Questions

How many leaves are employees entitled to in Delhi?

Under the Delhi Shops & Establishments Act 1954, employees get 15 days of privilege (earned) leave after 12 months plus 12 days of casual and sick leave per year. Women employees also get 26 weeks of maternity leave under central law.

Can privilege leave be carried forward in Delhi?

Yes. Unused privilege leave carries forward and can be accumulated up to three times the annual entitlement, a maximum of 45 days. Casual and sick leave cannot be carried forward.

Is leave encashment mandatory in Delhi?

Unavailed privilege leave is encashable, usually at (Basic + DA) ÷ 26 × unused PL days, especially at exit. Casual and sick leave are not encashable.

How much maternity leave applies in Delhi?

26 weeks of paid leave for the first two children and 12 weeks from the third child, under the central Maternity Benefit Act 1961. It applies to all establishments regardless of size.

Is paternity leave mandatory for private companies in Delhi?

No. There is no statutory paternity leave for private-sector employees. Central government staff get 15 days. Most private firms offer 5 to 15 days as a policy benefit.

Do these rules apply to factories in Delhi?

Factories follow the Factories Act 1948, which gives one earned leave for every 20 days worked after 240 days in a year. Shops and offices follow the Delhi Shops & Establishments Act.

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