Which type of industry are you working for? Is it covered under the Factories Act or the Shops and Establishments Act? Below is the information from two acts; consider whichever is applicable to your industry:
As per Factories Act CHAPTER VIII
Section 79 - Annual Leave with Wages
(1) Every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed, during the subsequent calendar year, leave with wages for a number of days calculated at the rate of:
(i) If an adult, one day for every twenty days of work performed by him during the previous calendar year.
As per Bombay Shops and Establishments Act, 1948 Section 35
Leave with Pay and Payment of Wages
Section 35: Leave
(1) (a) Subject to the provisions of clause (b), every employee who has been employed for not less than three months in any year shall, for every 60 days on which he has worked during the year, be allowed leave, consecutive or otherwise, for a period of not more than five days.
(b) Every employee who has worked for not less than two hundred and forty days during a year [irrespective of the date of commencement of his service] shall be allowed leave, consecutive or otherwise, for a period of not less than twenty-one days. Provided that such leave may be accumulated up to a maximum period of forty-two days.
Explanation: The leave allowed to an employee under clauses (a) and (b) shall be inclusive of the day or days during the period of such leave, on which a shop or commercial establishment remains closed under subsection (1) of section 18, or on which he is entitled to a holiday under subsection (1) of section 24 or section 31.
(2) If an employee entitled to leave under subsection (1) [or (1-A)] is discharged by his employer before he has been allowed the leave, or if, having applied for and having been refused the leave, he quits his employment before he has been allowed the leave, the employer shall pay him the amount payable under section 36 in respect of the leave.
(3) If an employee entitled to leave under subsection (1) [or (1-A)] is refused the leave, he may give intimation to the Inspector or any other officer authorized in this behalf by the [State] Government regarding such refusal. The Inspector shall enter such intimation in a register kept in such form as may be prescribed. The employee shall also send a copy of such intimation to his employer and, thereupon, the employee shall be entitled to carry forward the unavailed leave without any limit.
(4) Notwithstanding anything contained in this section, every employee, irrespective of his period of employment, shall be entitled to an additional holiday on the 26th January, 1st May, 15th August, and 2nd October every year. For a holiday on these days, he shall be paid wages at a rate equivalent to the daily average of his wages (excluding overtime) which he earns during the month in which such compulsory holiday falls. Provided that the employer may require any employee to work in the establishment on all or any of these days, subject to the conditions that for such work, the employee shall be paid double the amount of the daily average wages and also leave on any other day in lieu of the compulsory holiday.