How Many Paid Leave Days Do IT Companies in Pune Typically Offer? Seeking Insights!

Hi Everyone!

I am working with a US-based software company having its ODC in Pune. We have been giving 24 days of paid leave to all the employees so far. However, we wanted to revise our leave policy for the next financial year and would like to know what is the general norm for the number of days of leave in the IT industry in Pune. We are a company registered under the Bombay Shop and Establishment Act. We have off on Saturdays and Sundays and have 10 holidays in a year. Would appreciate your comments to decide the number of days of leave for our employees.

Regards,
Niki

Dear,

As you are located in Pune and Bombay, the Shops and Establishments Act will apply to your company. According to the Bombay Shops and Establishments Act, you are required to provide 21 days of paid leave in a year. If you are currently providing 24 days of paid leave, then there is no issue. If you wish to increase this number, that is also acceptable. However, it is important not to decrease this benefit as any facility once extended should not be curtailed.

Thank you,
J. S. Malik

Dear Niki,

As per the law, you are compliant with providing more holidays as required by the law. Additionally, you have 10 public holidays, and Sundays/Saturdays are off days. Therefore, I believe your employees may not be requesting more leave.

One solution you can consider for addressing employees' commuting problems, canteen expenses, toiletries, and office space is to allow a fixed number of employees to work from home on permission each month.

Regards,

Category of Leaves

i) Earn Leaves (E.L.) / Privilege Leave (P.L.)
ii) Casual Leave (C.L.)
iii) Sick Leave (S.L.)
iv) Maternity Leave
v) Bereavement leave
vi) Short Leave / Half Day
vii) National Holiday

Casual Leave (C.L.)

7 days in a year or maximum one leave per month (Not many companies have this). It will depend upon the company's leave policies. It will not be forwarded to the next year or no cash encashment. It will lapse.

Earn Leaves (E.L.) / Privilege Leave (P.L.)

1.67 per month, i.e., 20 days in a year. According to the Factories Act 1948, one adult person is eligible for one leave every 20 days, or one leave every 15 days in the case of a child. The person is eligible for getting the leave after working a minimum of 240 days in a calendar year. If you have not utilized this type of leave, it will be carried forward to the next year. But many organizations have some limit of carry forward; the rest are encashed.

Sick Leave (S.L.)

7 days in a year. It will not be forwarded to the next year or no cash encashment. It will lapse. Such type of leave requires some proof like a medical certificate, etc.

Maternity Leave

3 months, i.e., 12 weeks (this can be split - pre and post-delivery).

Bereavement Leave

In case of the death of a close relation like a husband, wife, father, or mother. Can be given for 2-4 days. The company needs to decide.

Short Leave / Half Day

Whenever you are looking for a change, this type of leave is very necessary for you.

National Holiday

Minimum 4 days in a year. It will not be forwarded to the next year or no cash encashment. It will lapse.

Leaves at a Glance
- Earn Leaves (E.L.) / Privilege Leave (P.L.) -------- 20 Days in a Year
- Casual Leave (C.L.) -------- 7 to 12 Days in a year
- Sick Leave (S.L.) -------- 7 Days in a Year
- Maternity Leave -------- 3 Months
- Bereavement leave -------- 2 to 4 Days in a Year
- Short Leave / Half Day -------- No Limitation
- National Holiday -------- 4 Days in a Year
- Festival Holiday ------ 10 Days in a Year

Dear Niki,

Categories for your Leave:
1) PRIVILEGED LEAVE (PL)
2) SICK LEAVE (SL)
3) CASUAL LEAVE (CL)
4) PAID HOLIDAYS (PH)

In our company, we have allocated 24 PL, 10 SL, 7 CL, & 15 PH (12 Fixed & 03 Flexible PH as per the individual employee's festival). An employee can avail 01 SL & 1 CL in a month during their probation period, and PL eligibility after completing one year.

Regards,
Nimish Joshi
9969526325

Hey, leave policies differ from company to company.

In my company, we are allotted 12 PL, 5 SL, and 5 CL, totaling 22 leaves, plus 12 holidays yearly!

Hi all,

In our company, we provide 12 CL, 12 SL, 12 PL, and 9 days of Festival leave. Apart from PL, no other leaves can be combined, encashed, or carried forward.

Regards,
Venkatesh

Hi Niki,

You are not getting enough. You can't put pressure on the employer. You can leave. This is the only way for you.

Regards,
Ajay Sharma

Dear Mr. Venkatesh,

PL, as per the rule, must be 15 days in the year, i.e., 1 day for every 20 working days. If the employee has worked 240 days, they will get 15 EL/PL. At least 10 leaves must be there, as per the rule. CL & SL are okay, but you can reduce SL to up to 7 as per the rule.

With regards,
Ramnath

Dear Nikita,

The normal practice ranges from one good IT company (CMM Level 3 to CMM Level 5 Company) to another. Some large and good ones even have 30 Earned Leave (or Privilege Leave), 15 days Sickness Leave, and 15 days Casual Leave. These three are the main types of leave as per any Act (including the Shops & Establishment Act). You can add many more types of leave to attract/retain employees.

You can recommend to your management the following quantum of leave for the new financial year as follows:

1. Earned Leave - (between 15 days to 30 days per annum)
2. Sickness Leave - (between 7 days to 15 days per annum)
3. Casual Leave - (between 7 days to 12 days per annum)

Holidays in IT companies normally range from 10 to 12 days per annum. The five-day week has no impact on the quantum of leave, statutorily.

Do ensure that you do not reduce any of your leave below what is stipulated under the Bombay Shops and Establishments Act, 1948. If you exceed the quantum of leave stipulated under this Act, there is no problem.

Regards,

Rahul

Hi Everyone!

I am working with a US-based software company having its ODC in Pune.

We have been giving 24 days of paid leave to all the employees so far. However, we wanted to revise our leave policy for the next financial year and would like to know what is the general norm for the number of days of leave in the IT industry in Pune.

We are a company registered under the Bombay Shop and Establishment Act. We have off on Saturdays and Sundays and have 10 holidays in a year.

Would appreciate your comments so as to decide the number of days of leave for our employees.

Regards, Niki

Hi Niki,

The minimum number of leaves per year is:
- CLs: min. 7
- ELs/PLs: min. 15 (one leave per 20 days, eligibility: min. 240 days attendance)
- SLs: min. 7
- NHs: min. 4

The rest all depends on your internal policy. For example, I allow the SLs to be carried forward for three years. The logic I use is, "We can't force somebody to fall sick and avail sick leave," and so on.

All the best.

Regards,
Vijender
Hyderabad.