Confused About Leave Calculation: Should It Be Based on Financial Year or Calendar Year?

How to calculate the leaves for the company? Is it based on the financial year (March to April) or the Annual Year (Jan to Dec)? We have 18 leaves per annum. Is it calculated from Jan to Dec or from March to April, and how are the leaves calculated? Is it from (Jan to Dec) or (March to April)? Please advise.

Hi,

Always leaves are calculated on a calendar year, i.e., January to December only.

Thank you.

Yes, leaves are calculated based on the calendar year (Jan-Dec). I agree with Jeevarathnam.

---

Dear Mr. Sandeep,

I too agree with Mr. Jeevarathnam and Mr. Sandeep. All types of leave, whether it be PL/EL, Casual Leave, or Sick leave, are calculated on a calendar year basis. Casual leaves are not carried forward, but PL/EL are allowed to accumulate within permissible limits. If you provide the breakdown of your 18 days of leave, we can further guide you on the leave rules.

Adoni Suguresh
Labour Laws Consultant

There are more than one practice followed by different kinds of establishments. For example, state and central government follow Casual Leave on a calendar year basis and EL/PL/ML on a completed year of service basis. Whereas some private firms follow a little differently, partly on a calendar year and partly on a financial year basis. Some follow fully on a financial year basis.

Consider the Type of Establishment

First of all, you must consider what type of establishment you are in - factory/industry or offices (Shops & commercial Establishments) as the leave rules provided in the respective Acts have to be followed.