Attendance & leave
Earned leaveEL / Privilege leave
Earned leave, also called privilege leave, is paid leave that accrues with service, can be carried forward within limits, and is encashable at exit.
Typically 15 to 21 days a year accrue monthly. State acts set a minimum accrual (often one day per 20 days worked) and a maximum carry-forward (30 to 45 days). Unused balance beyond the cap lapses or is encashed.
EL is the leave type that has a rupee value, which is why its ledger matters most.
In Indian payroll
Encashment at exit is tax-free up to ₹25 lakh for private employees. Policies must state the carry-forward cap clearly because it decides the F&F amount.
What is Earned leave?
Earned leave, also called privilege leave, is paid leave that accrues with service, can be carried forward within limits, and is encashable at exit.
Why does Earned leave matter in Indian payroll?
Encashment at exit is tax-free up to ₹25 lakh for private employees. Policies must state the carry-forward cap clearly because it decides the F&F amount.
Related terms
In Kuzhu
The Leave Management module in Kuzhu is where Earned leave is handled, on the same employee record as everything else.
WhatsApp us