Leave Policy in Odisha 2025: A Complete Guide

Introduction

Each state in India has its own unique set of labor laws and regulations, reflecting the diverse cultural and economic landscape of the country. Similarly, Odisha, known for its rich cultural heritage and significant contributions to agriculture and industry, has developed its own distinct approach to leave policies and workforce management. As a state that balances traditional practices with modern economic demands, Odisha plays a vital role in shaping labor practices that cater to the needs of its diverse workforce.

About Odisha

Odisha is located on the eastern coast of India, bordered by the Bay of Bengal. The state is renowned for its ancient temples, vibrant art forms, and diverse tribal communities. Odisha's economy is primarily driven by agriculture, with rice as the staple crop, alongside a growing industrial sector that includes mining, manufacturing, and information technology. The state's strategic location and rich natural resources contribute to its economic development. Odisha's approach to labor policies reflects its commitment to employee welfare while fostering a conducive environment for business growth. By implementing comprehensive leave policies, Odisha aims to ensure that employees can manage their personal and professional lives effectively, thereby enhancing productivity and job satisfaction across various sectors.

The Odisha Shops and Commercial Establishments Act, 2015

The Odisha Shops and Commercial Establishments Act, 2015, governs the leave policies and working conditions in the state of Odisha. This comprehensive legislation aims to create a balanced framework that protects the rights of employees while meeting the operational needs of businesses. The Act outlines various types of leave entitlements, including earned leave, casual leave, and sick leave, ensuring that employees have access to necessary time off for personal matters, health issues, and significant life events. Specifically, it provides for 14 days of earned leave per year, which can be accumulated and carried forward to subsequent years, along with provisions for casual and sick leave that are designed to accommodate short-term absences. The Act also mandates that employers maintain proper records of employee attendance and leave utilization while establishing guidelines for the approval process of leave requests. By implementing these regulations, the Odisha Shops and Commercial Establishments Act not only promotes employee well-being but also enhances productivity and operational efficiency within businesses across the state. This framework helps both employers and employees clearly understand their rights and responsibilities in the workplace.

Understanding Leave Policies in Odisha

Leave policies in Odisha are essential for maintaining a healthy work-life balance and ensuring the well-being of employees across various sectors. Governed by the Odisha Shops and Commercial Establishments Act, 2015, these policies provide a comprehensive framework that addresses the diverse needs of the workforce while supporting smooth business operations. The Act outlines various types of leave entitlements, including earned leave, casual leave, and sick leave, ensuring that employees have access to necessary time off for personal matters, health issues, and significant life events. By fostering a structured approach to leave management, Odisha's policies aim to enhance employee satisfaction and productivity while accommodating the operational requirements of businesses in the state’s growing economy. This balanced approach not only supports employee welfare but also contributes to the overall efficiency and effectiveness of organizations operating within Odisha.

Types of Leave in Odisha

Odisha's leave policy is structured to provide various types of leave to employees, ensuring their well-being and accommodating personal needs. Below is a detailed overview of the different types of leave available to employees in Odisha, based on official government sources.

Earned Leave (EL) / Privilege Leave (PL)

Employees in Odisha are entitled to 18 days of Earned Leave per year. To be eligible for this leave, an employee must complete 240 days of continuous service within a calendar year. Employees can carry forward up to 30 days of unused Earned Leave to the next year. Additionally, any unused Earned Leave can be encashed upon termination of employment, allowing employees to benefit from their accrued time off.

Casual Leave (CL)

In Odisha, there is no specific provision for Casual Leave as per the existing regulations for government employees. This means that employees do not have a designated number of days for Casual Leave under the current policy framework.

Sick Leave (SL)

Employees are entitled to 15 days of Sick Leave each year after completing 12 months of continuous service. Sick Leave is intended for health-related issues and cannot be accumulated or carried forward to the next year. If an employee is absent for more than two consecutive days, a medical certificate may be required to validate the leave taken.

Maternity Leave for Women Employees

Female employees in Odisha are entitled to 180 days (approximately 26 weeks) of paid maternity leave for their first two children. To qualify for this leave, the employee must have worked for at least 80 days in the 12 months preceding the expected delivery date. For subsequent children, the duration is typically reduced to 12 weeks.

Paternity Leave

While there is no statutory requirement for paternity leave in Odisha, some organizations may voluntarily offer it. The duration may vary depending on company policy, but it is commonly around 15 days.

Compensatory Off

Employees who work on holidays or weekends may be eligible for Compensatory Off. This leave must generally be utilized within a specified period after accrual, often within four weeks.

Leave Without Pay (LWP)

Leave Without Pay is available when an employee has exhausted all other leave options. This type of leave allows for extended absences but may affect salary and benefits during the leave period.

Public Holidays in Odisha for 2025

The Government of Odisha has declared a total of 26 public holidays for the year 2025, which includes a mix of national holidays, state-specific observances, and optional holidays.. These holidays are applicable to state government offices, revenue offices, and magisterial courts. 

National Holidays in Odisha 2025

National holidays in Odisha are observed to commemorate significant events in India's history. Republic Day, celebrated on January 26, marks the adoption of the Constitution of India. Independence Day on August 15 celebrates India's freedom from British rule, and Gandhi Jayanti on October 2 honors Mahatma Gandhi's contributions to the nation.

State Holidays in Odisha 2025

State holidays are specific to Odisha and include regional festivals and observances that hold cultural significance. These holidays allow citizens to celebrate their heritage and participate in traditional festivities.

Optional Holidays in Odisha 2025

Optional holidays provide flexibility for state government employees, allowing them to observe additional cultural or religious events with prior approval from their authorities. These holidays may vary based on personal or community significance. The total number of public holidays in Odisha for the year 2025 is 26, with an additional 8 optional holidays available for employees.

Employees may avail one optional holiday on any other festive occasion/ commemorative days as listed above.

Working Hours and Overtime in Odisha

Standard Working Hours

In Odisha, working hours are governed by the Odisha Shops and Commercial Establishments Act, 2015. The Act stipulates:

• Normal working hours: 9 hours per day
• Maximum working hours: 48 hours per week
• Mandatory rest interval: At least half an hour after 5 hours of continuous work

Overtime Regulations

• Maximum overtime: 50 hours in a quarter
• Overtime pay rate: Twice the ordinary rate of normal wages
• Daily limit: Total working hours including overtime shall not exceed 10 hours in any day

Additional Provisions

• Spread over: The periods of work of an employee shall not spread over more than 10 hours in any day.
• Consecutive overtime: No employee shall be allowed to work overtime for more than seven consecutive days.
• Record keeping: Employers must maintain records of working hours and overtime.

Odisha's regulations aim to balance employee welfare with business needs, ensuring fair compensation for extra hours worked while setting reasonable limits on overtime to prevent exploitation.

Leave Policy Guidelines in Odisha

Leave Accrual and Allocation

Odisha's leave policy establishes a structured system for accruing and allocating various types of leave. Earned Leave allows employees to accumulate leave days throughout the year. Other types of leave, such as Casual Leave and Sick Leave, are granted annually at the beginning of each calendar year. New employees receive pro-rated leave based on their joining date, ensuring fairness in leave allocation.

Leave Approval Process

The leave approval process is designed to balance employee needs with organizational requirements. Employees must submit leave requests at least one week in advance for planned leaves, allowing managers to prepare for the employee's absence. All leave requests require manager approval before being confirmed to ensure that business operations are not disrupted.

Extended Leave Notice

For leaves exceeding three days, employees must provide a minimum of two weeks' notice. This extended notice period helps in better resource allocation and project planning.

Leave Management

• Carry Forward Policy: Only Earned Leave can be carried forward to the next year, up to a maximum of 30 days. This provision allows employees to accumulate leave for future use while preventing excessive accumulation.
• Leave Encashment: Unused Earned Leave is encashable at the end of employment, ensuring that employees do not lose accrued benefits.
• Documentation Requirements: A medical certificate is required for Sick Leave exceeding two consecutive days to prevent misuse while accommodating genuine health issues.

Leave During Probation

In Odisha, there is no distinction between probationary and confirmed employees for leave benefits. Probationary employees are entitled to the same statutory leaves as regular employees.

Attendance and Absence Policies

• Unauthorized Absence: Unauthorized absence may result in disciplinary action and salary deduction, encouraging responsible leave management.
• Mandatory Attendance Around Holidays: Employees are required to be present on the last working day before and after a public holiday unless on approved leave.

Special Circumstances

• Bereavement Leave: Employees are granted 3 days of leave in the event of an immediate family member's death.
• Marriage Leave: A one-time provision of 5 days of leave is available for an employee's marriage.

Flexible Work Arrangements

The company may offer work-from-home options on certain festival days not listed as official holidays, subject to manager approval and business needs. This flexibility acknowledges the changing nature of work and allows for better work-life balance while respecting cultural diversity.

Odisha's leave policy aims to strike a balance between employee welfare and business needs, offering various options to cater to different life situations while ensuring compliance with local regulations.

Wisemonk: Streamlining Leave Management and Payroll for Global Businesses 

Navigating the complexities of leave management and payroll in Karnataka can be challenging, especially for global businesses. Wisemonk offers a comprehensive solution to simplify these processes and ensure compliance with local regulations.

Comprehensive Leave Management: 

Wisemonk offers automated tracking of all leave types, real-time leave balance updates, and customizable approval workflows  that comply with both national and state-specific leave policies.

Accurate Payroll Processing: 

The platform integrates leave data with payroll calculations, ensuring precise overtime pay calculations and timely salary disbursements in accordance with national labor laws and state regulations.

Compliance and Reporting: 

Wisemonk stays up-to-date with both central and state labor laws, generates required statutory reports, and maintains audit-ready documentation for seamless regulatory compliance.

Employee Self-Service Portal: 

Employees can easily apply for leave, track their balances, and access pay slips and tax documents through a user-friendly interface, enhancing transparency and efficiency.

Attendance Management: 

Wisemonk provides a seamless attendance tracking system that integrates with leave management for comprehensive reporting and customizable attendance policies, adaptable to both national standards and state-specific requirements.

If you want to understand more about leave policies in India, we recommend referring to our article "Understanding Leave Policy Laws and Holidays in India".

Please contact us for additional information.