How Do You Calculate Privilege Leave for a 6-Day Workweek? Seeking Compliance Insights

Is there a formula to calculate PRIVILEDGE LEAVE?
My company that works for 6 day a week and our current leave structure is:
PRIVILEDGE LEAVE – 12 DAYS
SICK LEAVE – 6 DAYS
CASUAL LEAVE – 6 DAYS
NATIONAL & FESTIVAL HOLIDAYS – 12 DAYS.
Are we on the right track from the compliance point of view?
Regards,
Mridula

Dear Mridula,

CL and SL are company-driven, normally ranging from 5-7 days each. Regarding PL, also known as Earned Leave (EL), the calculation is as follows: For Adults, it is 1 day of leave for every 20 days of work, and for Children, it is 1 day of leave for every 15 days of work. These are the provisions of the Factories Act, which states that a year consists of 240 days.

In addition, three national holidays (15 Aug, 26 Jan, 2 Oct) are mandatory to be observed by any company operating in India. Furthermore, depending on the company's policies, additional holidays can be observed.

Regards,
Nilendra

Hi,

As per the National and Festival Act, the company has to declare a minimum of 9 days of leave, out of which 4 can be National holidays and 5 can be festival holidays.

Normally, the system followed in most companies is 6 days of CL and 7 days of SL. Privilege leave is calculated based on the number of working days in a year.

For employees who work from January 1st, they should have worked for a minimum of 240 days in the year to be eligible for Privilege Leave of PL nature as per Section 87 of the Factories Act.

It is 1 day of PL for every 15 days worked for young persons and 1 day of PL for every 20 days worked for adults.

I hope your query has been clarified.

Regards,
R. Sudhakar