The Question Everyone Asks
“How many sick leaves am I actually entitled to?”
Rohan just joined a tech company in Bangalore. His offer letter mentioned “12 sick leaves annually” but didn’t explain much beyond that.
Are these paid? Do unused leaves carry forward? What if he needs more than 12 days? Can the company reject his sick leave? Do they really need a medical certificate every single time?
If you work for a private company in India and you’re confused about sick leave rules, you’re not alone. Unlike government employees whose rules are standardized, private sector sick leave policies vary widely.
This guide explains exactly how sick leave works in private companies across India in 2026 – the legal minimums, what companies typically offer, and your rights as an employee.
The Legal Framework: What Law Says
There’s no single central law governing sick leave for all private sector employees in India. Instead, it depends on:
State-Specific Shops and Establishments Acts
Most private sector employees are covered under their state’s Shops and Establishments Act. Each state has its own, and they vary.
Common provisions across states:
- Sick leave entitlement (typically 10-18 days per year)
- Some states specify paid sick leave, others don’t mandate payment
- Medical certificate requirements
- Accumulation and carry-forward rules
Let’s look at major states:
| State | Annual Sick Leave | Key Provisions |
|---|---|---|
| Maharashtra | 12 days (1 per month) | Paid leave, medical certificate required for 3+ consecutive days |
| Karnataka | 12-15 days | Paid leave, certificate required after 2-3 days usually |
| Tamil Nadu | 12 days | Paid, certificate for extended absences |
| Delhi | 12 days | Paid leave with medical certificate |
| Haryana | 12 days | Paid, certificate required |
| Telangana | 12 days | Paid leave, medical documentation needed |
| West Bengal | 15 days | Paid leave with certificate |
Important: These are minimum statutory requirements. Companies can (and often do) provide more generous policies, but they cannot provide less than what state law mandates.
Factories Act, 1948
For manufacturing sector employees, the Factories Act governs sick leave.
Key provisions:
- Sickness leave on half wages or leave on full wages with medical certificate
- Entitlement linked to service period
- Cannot be less than 1/18th of total service period
Industrial Employment (Standing Orders) Act, 1946
For industrial establishments with 100+ workers:
- Must have certified standing orders defining leave policies
- Sick leave rules must be clearly specified
- Changes require certification by appropriate authority
What Private Companies Typically Offer (2026 Standards)
Beyond legal minimums, here’s what most private companies across sectors actually provide:
IT/Tech Companies (Bangalore, Hyderabad, Pune, NCR)
- Sick leave: 12-15 days annually
- Paid: Yes, fully paid
- Certificate: Required after 2-3 consecutive days usually
- Carry forward: Varies – some allow partial carry forward, many don’t
- Encashment: Rarely allowed (unlike earned leave)
Examples:
- TCS, Wipro, Infosys: 12 sick leaves
- Tech Mahindra: 12 days
- Most MNCs (Google, Microsoft, Amazon): 10-15 days
Banking and Finance
- Sick leave: 12-15 days
- Paid: Yes
- Certificate: Often required from day 1 or day 2
- Carry forward: Some banks allow accumulation up to limit
- Additional: Some have separate hospitalization leave
Consulting Firms
- Sick leave: 10-15 days
- Paid: Yes
- Certificate: Required quickly, sometimes from day 1
- Carry forward: Usually not
- Note: Stricter tracking due to client billing
Startups
- Sick leave: Highly variable, 12-15 days typical
- Some have “unlimited” policies (actually means reasonable use, still need approval)
- Certificate: Requirements vary widely
- Documentation: Often less formal but still required for extended absences
Manufacturing/FMCG
- Sick leave: Per Factories Act, minimum 1/18th of service
- Paid: Often half pay or full pay with certificate
- Certificate: Usually required
- Different for workers vs staff
Paid vs Unpaid Sick Leave
What is paid sick leave?
You receive your regular salary for days you’re on approved sick leave. No deduction from monthly pay.
What is unpaid sick leave?
You don’t receive salary for those days. Pro-rata deduction from monthly pay.
What do Indian laws say?
Most Shops and Establishments Acts specify that sick leave with medical certificate should be paid leave. However, enforcement varies.
Common practice in 2026:
- Organized sector (IT, banking, established companies): Sick leave is paid
- Smaller establishments: May offer unpaid or half-pay sick leave
- Extended illness beyond quota: Often unpaid after exhausting paid leaves
What to check in your offer letter:
Look for phrases like:
- “12 paid sick leaves” – clearly paid
- “12 sick leaves with medical certificate” – likely paid but confirm
- “Sick leave on production of medical certificate” – ambiguous, ask HR
Medical Certificate Requirements
When do you need one?
Varies by company, but common thresholds:
- After 1 day: Very rare, usually only in strict industries like banking or BPOs
- After 2 consecutive days: Common in consulting, some IT companies
- After 3 consecutive days: Most common threshold in IT/tech sector
- For any patterned absence: Repeated Mondays/Fridays off may trigger certificate requirement even for single days
What certificate must contain:
- Doctor’s name and MBBS/MD qualification
- Medical council registration number
- Your name (matching company records)
- Date(s) of illness
- Diagnosis or nature of illness
- Recommended rest period
- Doctor’s signature and clinic stamp
Timeline for submission:
- Most companies: Within 24-48 hours of returning to work
- Some allow up to 7 days
- Check your company policy
- Late submission without valid reason may lead to rejection
Carry Forward and Accumulation
Can unused sick leaves carry forward?
Depends on company policy:
No carry forward (most common):
- Use it or lose it
- Resets to 12 (or whatever quota) every January 1st or financial year
- Common in IT companies
Partial carry forward:
- Carry forward up to 6-12 days
- Some banks and large corporations allow this
Full accumulation up to limit:
- Rare for sick leave (more common for earned leave)
- May accumulate up to 60-90 days total
- Usually in government or public sector
Can you encash unused sick leave?
Almost never. Unlike earned leave/privilege leave which can often be encashed, sick leave:
- Cannot be encashed at year-end in most companies
- Cannot be encashed on resignation/retirement
- Is considered a welfare benefit, not a financial entitlement
What Happens If You Exceed Your Quota?
You need more than 12 days sick leave in a year. What now?
Option 1: Loss of Pay (LOP)
- Most common
- Additional days marked as Loss of Pay
- Salary deducted pro-rata
- Still need medical documentation
Option 2: Use Earned Leave
- Convert sick days to earned leave/casual leave
- You still get paid but uses vacation quota
- Many companies allow this
Option 3: Extended Medical Leave
- For serious illness/hospitalization
- Some companies have separate hospitalization leave (15-30 days)
- May be paid or unpaid depending on policy
- Requires detailed medical documentation
Option 4: Leave Without Pay
- For very extended illness
- Unpaid but job protected (usually)
- May affect benefits, appraisal eligibility
- Requires approval and medical documentation
Can company terminate for excessive sick leave?
Generally no, if you have medical documentation. However:
- Extended absences (months) may lead to “incapacity to work” grounds for termination
- Must follow due process and standing orders
- Chronic conditions may be protected under disability laws
- Frequent undocumented absences can lead to termination for misconduct
Sick Leave During Probation
Are you entitled to sick leave during probation period?
Yes, but:
- Some companies have stricter certificate requirements
- May get pro-rated sick leave (e.g., 3 months probation = 3 sick leaves)
- Some companies don’t grant paid sick leave during probation
- Check offer letter and probation terms
Can excessive sick leave during probation lead to termination?
Yes, more easily than post-confirmation:
- Probation allows termination with notice for “unsuitability”
- Frequent illness during probation may be cited
- However, still need documentation and can’t be arbitrary
- Protected health conditions (pregnancy, disability) have special protections
Special Provisions
Maternity-Related Sick Leave
Maternity Benefit Act, 1961:
- 26 weeks paid maternity leave (separate from sick leave)
- Additional 1 month optional leave (usually unpaid)
- Cannot use sick leave to extend maternity leave without medical necessity
- Pregnancy complications may justify additional sick leave
Work From Home as Alternative
Post-COVID, many companies allow:
- WFH instead of sick leave for mild illness
- Doctor certificate stating “fit for light work from home”
- Doesn’t consume sick leave quota
- Becoming common practice in IT sector
Quarantine Leave
COVID introduced:
- Separate quarantine leave in many companies
- Doesn’t consume sick leave quota
- Some retained this post-pandemic for contagious illnesses
Your Rights as Employee
You have the right to:
- Statutory minimum sick leave per your state’s Shops and Establishments Act
- Paid sick leave if state law mandates it
- Fair consideration of medical certificates from registered practitioners
- Privacy – employer can verify certificate but cannot demand complete medical records
- Non-discrimination – sick leave approval cannot be discriminatory based on gender, disability, etc.
Employer’s rights:
- Require medical certificates per company policy
- Verify doctor registration and certificate authenticity
- Set reasonable policies (timelines, documentation format)
- Reject certificates lacking required elements or from non-qualified practitioners
- Take disciplinary action for fraudulent certificates
Common Scenarios Explained
Scenario 1: Single Day Sick Leave
Your company requires certificate only after 3 days. Can you take 1 day sick leave without certificate?
Yes – if company policy allows it. However:
- Don’t abuse this by taking frequent single days
- Pattern of Monday/Friday absences may trigger stricter requirements
- Some companies may ask for certificate anyway if suspicious
Scenario 2: Weekend Extends Sick Days
You’re sick Friday and Monday. Is that 2 sick days or 4?
Usually 2 sick days (only working days count). However:
- Medical certificate should cover entire period including weekend
- Shows you were continuously ill, not taking extended weekend
- Some companies may count it as continuous 4 days for certificate requirement purposes
Scenario 3: Sick While on Earned Leave
You’re on vacation and fall sick. Can you convert to sick leave?
Depends on company policy:
- Some companies allow conversion with medical certificate
- Others don’t (vacation is vacation)
- Hospitalization may be treated differently
- Must inform company immediately and get documentation
What Your Employment Contract Should Clarify
Check your offer letter or employee handbook for:
- Number of sick leaves: 12, 15, or other
- Paid or unpaid: Explicitly stated
- Certificate requirement: After how many days
- Submission timeline: When to submit certificate
- Carry forward policy: Can unused leaves carry forward?
- Accumulation limit: If carry forward allowed, what’s the max?
- Encashment: Can you encash unused sick leaves?
- Probation rules: Different rules during probation?
- Extended illness policy: What happens if you exceed quota?
Final Thoughts
Sick leave rules in private companies in India are governed by a mix of:
- State-specific Shops and Establishments Acts (legal minimum)
- Central laws like Factories Act for certain sectors
- Company policies (which must meet or exceed legal minimums)
- Employment contracts
Most private companies offer 12-15 paid sick leaves annually, require medical certificates after 2-3 consecutive days, and don’t allow carry forward or encashment.
Know your state’s law, read your employment contract, and understand your company’s specific policy. These three together define your actual sick leave rights.
When you’re genuinely ill, take sick leave. That’s what it exists for. Get proper medical documentation, submit on time, and don’t worry about using your entitlement.
Your health comes first. Your sick leave policy exists to protect you when you need it.