How annual leave with wages is earned

One day of leave for every 20 days worked, once 180 days are worked in the calendar year. Carry forward up to 30 days, encashment at year end and on leaving.

Under s. 32 of the OSH Code:

  • A worker who has worked 180 days or more in a calendar year earns leave at one day for every 20 days worked. Days of lay-off, maternity leave and earlier leave count as days worked for the 180 days.
  • A new worker earns leave in proportion in the year of joining.
  • Unused leave up to 30 days is carried forward.
  • The worker may ask for encashment of the leave standing to credit at the end of the calendar year.
  • On leaving, by any means, the unused leave is paid.
  • Leave wages are at the rate of the average daily wages for the days worked in the month before the leave.

The HR desk credits annual leave at 1 per 20 days worked and keeps the leave register.

Last reviewed 17-10-2026. General information, not legal advice for a specific case. Check the latest Act, Rules and notifications of the appropriate government before acting.

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