Resources
Dec 23, 2024

Leave Policy in Kerala 2025: Everything You Need to Know

Explore the essential regulations and guidelines of Leave Policy of Kerala to ensure compliance and informed decision-making. Read more for clarity.

Leave Policy in Kerala 2025: Everything You Need to Know
Table of contents

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. Kerala, known for its high literacy rate, progressive social policies, and unique economic model, has developed its own distinct approach to leave policies and workforce management. As a state with a strong focus on human development and social welfare, Kerala plays an important role in shaping labor practices that balance worker rights with economic growth across the country.

About Kerala

Kerala, located in the southwestern part of India, is a state renowned for its lush landscapes, rich cultural heritage, and high quality of life. Known as "God's Own Country," Kerala has consistently ranked high in human development indices within India. The state's economy is diverse, encompassing traditional sectors like agriculture and fishing, as well as modern industries such as IT, tourism, and healthcare. Kerala's unique development model, which prioritizes social welfare and education, has resulted in a highly literate and skilled workforce. This combination of social progress and economic diversity necessitates a comprehensive approach to labor policies, including leave management, to meet the needs of its workforce while supporting the state's continued growth and development.

The Kerala Shops and Commercial Establishments Act, 1960

The Kerala Shops and Commercial Establishments Act, 1960 governs the leave policies and working conditions in the state of Kerala. This comprehensive legislation aims to regulate various aspects of employment in shops and commercial establishments across the state. The Act provides a framework for leave entitlements, working hours, rest intervals, overtime work, holidays, and other employment conditions. It applies to all shops and commercial establishments in Kerala, requiring employers to register their establishments within the stipulated time frame. The Act regulates payment of wages, terms of service, work hours, rest intervals, overtime work, opening and closing hours, closed days, holidays, and leaves. Key provisions include setting maximum working hours at 8 hours per day and 48 hours per week, mandating at least one day of rest per week for employees, and stipulating overtime pay at twice the ordinary rate of wages. The Act also outlines requirements for maintaining employee registers, displaying work hour notices, and ensuring proper health and safety conditions in establishments. By establishing these regulations, the Act aims to protect employee rights while ensuring the smooth functioning of businesses in Kerala, thereby promoting fair labor practices and contributing to overall employee well-being.

Understanding Leave Policies in Kerala

Leave policies in Kerala play a crucial role in maintaining work-life balance and ensuring employee well-being. The leave period is essential for ensuring employee well-being and compliance with legal provisions. The state’s approach to leave policies is governed by the Kerala Shops and Commercial Establishments Act, 1960, which provides a comprehensive framework to address the diverse needs of its workforce while ensuring smooth business operations. For employees, these policies offer essential time off for rest, personal matters, and unforeseen circumstances. For employers, well-structured leave policies contribute to increased productivity, employee satisfaction, and retention.

Kerala’s leave policies are designed to cater to the varied requirements of its workforce, particularly in the state’s diverse economic sectors, including traditional industries like agriculture and fishing, as well as emerging sectors such as IT and tourism. The state’s leave structure includes provisions for various types of leave, each designed to meet specific employee needs while balancing the operational requirements of businesses. By offering a range of leave options, Kerala aims to foster a productive work environment across its diverse economic sectors, from traditional industries to its growing modern business hubs.

Types of Leave 

Kerala's leave policy provides a comprehensive framework to ensure employee well-being and work-life balance for government employees. The policy encompasses various types of leave, each designed to address different needs of the workforce. Based on the official Kerala government sources, here are the key details about leave entitlements for Kerala employees:

Types of Leave in Kerala

Casual Leave

Government employees in Kerala are entitled to 12 days of casual leave per year. This leave can be taken for any reasonable ground and does not require extensive justification.

Sick Leave

Employees are granted up to 12 days of sick leave with wages during every 12 months of continuous service. This leave is specifically for periods of illness or accidents sustained by the employee.

Earned Leave

After 12 months of continuous service, employees are entitled to 12 days of earned leave with wages. This leave can be accumulated up to a maximum of 24 days. Earned leave is often referred to as annual leave and can be used for personal purposes.

Maternity Leave

Female employees, including those on contract and provisional recruits, are eligible for maternity leave. The leave is granted for up to 180 days on full pay or until the expiry of the existing contract/tenure, whichever is earlier.

Special Casual Leave for Sterilization

Employees undergoing sterilization operations are entitled to special casual leave with wages. Male employees receive 6 days, while female employees receive 14 days of leave, effective from the day of the operation.

Leave Without Allowances

In certain cases, employees may be granted leave without allowances. This type of leave is often used for taking up employment abroad or within India, subject to specific rules and regulations.

It's important to note that the exact implementation of these leave policies may vary depending on the specific department or institution within the Kerala government. Additionally, there may be other types of leave or special provisions not mentioned in the provided search results.

Holidays in Kerala

The Government of Kerala has released the official list of public holidays for the year 2025. These holidays are categorized into national holidays, state holidays, and optional holidays. Here's a detailed breakdown of the holiday schedule for Kerala in 2025:

National Holidays

National holidays are observed throughout India and are mandated by the central government. In Kerala for 2025, there are 11 national holidays:

National Holidays in Kerala 2025
Date Day Holiday
26-1-2025 Sunday Republic Day
26-2-2025 Wednesday Maha Sivarathri
31-3-2025 Monday Id-ul-Fitr (Ramzan)
14-4-2025 Monday Vishu/Dr. B. R. Ambedkar Jayanthi
18-4-2025 Friday Good Friday
1-5-2025 Thursday May Day
6-6-2025 Friday Id-ul-Ad'ha (Bakrid)
15-8-2025 Friday Independence Day
2-10-2025 Thursday Vijayadasami/Gandhi Jayanthi
20-10-2025 Monday Deepavali
25-12-2025 Thursday Christmas

State Holidays

State holidays are specific to Kerala and are declared by the state government. There are 11 state holidays in Kerala for 2025:

State Holidays in Kerala 2025
Date Day Holiday
2-1-2025 Thursday Mannam Jayanthi
17-4-2025 Thursday Maundy Thursday
20-4-2025 Sunday Easter
24-7-2025 Thursday Karkadaka Vavu
28-8-2025 Thursday Ayyankali Jayanthi
4-9-2025 Thursday First Onam
5-9-2025 Friday Thiruvonam/Milad-i-Sherif
6-9-2025 Saturday Third Onam
7-9-2025 Sunday Sree Narayana Guru Jayanthi
21-9-2025 Sunday Sree Narayana Guru Samadhi
1-10-2025 Wednesday Mahanavami

Optional Holidays

Optional holidays, also known as restricted holidays, are days when government employees can choose to take leave. There are 3 optional holidays listed for Kerala in 2025:

Optional Holidays in Kerala 2025
Date Day Holiday
4-3-2025 Tuesday Ayya Vaikunda Swami Jayanthi
9-8-2025 Saturday Avani Avittom
17-9-2025 Wednesday Vishwakarma Day

It's crucial to note that the dates for Islamic holidays such as Id-ul-Fitr (Ramzan), Id-ul-Ad'ha (Bakrid), and Milad-i-Sherif are subject to change. These holidays follow the Islamic lunar calendar, where the beginning of each month is determined by the sighting of the new moon. As a result, the exact dates may shift by a day or two from the initially announced dates. 

Working Hours and Overtime in Kerala

Standard Working Hours

In Kerala, working hours are governed by the Kerala Shops and Commercial Establishments Act, 1960. The act stipulates:

  • Normal working hours: 8 hours per day
  • Maximum working hours: 48 hours per week
  • Mandatory rest interval: At least one hour after four hours of continuous work

Overtime Regulations

  • Maximum overtime: 50 hours in a quarter
  • Overtime pay rate: Twice the ordinary rate of wages

Additional Provisions

  • Spread over: The periods of work of an employee shall not spread over more than 10.5 hours in any day
  • Weekly holiday: Every person employed in an establishment shall be allowed a holiday of one whole day in each week
  • Record keeping: Employers must maintain overtime records

Kerala'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. The Act provides comprehensive guidelines for working hours and overtime, promoting fair labor practices across the state's diverse economic sectors.

Leave Policy Guidelines in Kerala

Kerala's leave policy provides a comprehensive framework for managing employee leave while ensuring smooth government operations. The following guidelines are based on official Kerala government documents and regulations.

Leave Accrual and Allocation

Kerala's leave policy allows for the accrual of various types of leave throughout the year. Earned Leave accumulates over time, with provisions for periodic surrender for eligible employees. The government grants other types of leave, such as Casual Leave and Maternity Leave, on an annual basis or as per specific circumstances. For instance, up to 180 days of maternity leave on full pay is provided, extending to contractual employees as well.

Leave Approval Process

The Kerala government has established a structured process for leave approval. Most types of leave can be sanctioned by appropriate authorities within government departments, ensuring efficient handling of leave requests while maintaining operational continuity. However, study leave and special disability leave require special approval due to their potential impact on departmental functioning.

Leave Management

Kerala's leave management system includes provisions for the periodic surrender of Earned Leave for eligible employees. This allows employees to convert a portion of their accumulated leave into monetary compensation. The government has also implemented special provisions for employees under various Contributory Provident Fund (CPF) Schemes regarding leave surrender. Additionally, there are guidelines for allowing terminal surrender of earned leave to temporary employees employed on a contractual basis, ensuring fair treatment across different employment categories.

Special Circumstances

  • Leave for Visiting Children Abroad: Specific guidelines are in place for granting leave to government employees to visit their children abroad.
  • Special Care Allowance: Revised guidelines exist for Special Care Allowance, though details are not provided in the search result

Financial Aspects

Kerala's leave policy includes measures to ensure the uninterrupted deduction of State Life Insurance (SLI) policy premiums from employees' salaries. This helps maintain the continuity of employees' insurance coverage even during leave periods. The government has also issued guidelines for the payment of uniform allowances, which may be relevant to certain categories of employees or specific departments

Additional Notes

  • The Kerala government periodically issues clarifications and updates to leave policies through official orders and notifications.
  • Specific departments may have additional leave rules or modifications to the general leave policy.

Wisemonk: Streamlining Leave Management and Payroll for Global Businesses 

Leave Management Made Effortless with Wisemonk

Navigating the complexities of leave management and payroll in Kerala 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.

Latest blogs