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Earned leave after 180 days and annual encashment now under Labour Code 2025
Economy
Published on 24 April 2026
After just 180 workdays, leave becomes payable
Under the Labour Code 2025, employees can claim earned leave after 180 days of work—much sooner than earlier practice. The law also adds annual encashment for unused leave, turning downtime into a monetary payout. However, the enhanced benefits exclude managerial or supervisory employees earning above Rs 18,000 per month.
- Earned leave eligibility now starts after 180 days
- Unused leave can be encashed annually for cash benefit
- Managerial or supervisory roles over Rs 18,000 monthly are excluded
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times