- Under the OSH Code, annual leave is earned after 180 days worked in a calendar year, at one day per 20 days.
- Overtime is paid at twice the normal wage rate, with consent, up to 144 hours a quarter.
- Maharashtra allows a 10-hour working day and 48 hours a week from 1 October 2025.
- Attendance and wage registers can be kept electronically for five years.
On this page
Which leave and hours rules apply to an office in Pune?
Both the central code and the Maharashtra Act, because the state law was not replaced.
| Rule | OSH Code, 2020 | Maharashtra Shops and Establishments Act, 2017 |
|---|---|---|
| Daily hours | 8 | 10 (from 1 October 2025) |
| Weekly hours | 48 | 48 |
| Overtime cap | 144 hours a quarter | 144 hours a quarter |
| Earned or annual leave | After 180 days worked, 1 day per 20 | After 240 days worked, 1 day per 20 |
| Carry-forward | Up to 30 days | Up to 45 days |
| Casual leave | Not set | 8 days a year |
| Paid festival holidays | Not set | 8, including 4 fixed dates |
Where the two differ, design your policy to satisfy both. Pick the richer rule. In practice that means accruing earned leave from 180 days and letting balances build to 45. The Maharashtra amendment Bill on PRS sets out the new hours.
How do you calculate overtime from attendance records?
Take “wages” as defined under the Code on Wages, convert to an hourly rate and double it.
Suppose a Pune support executive has monthly wages of ₹52,000 under the 50% rule and works a 52-hour week.
| Step | Figure |
|---|---|
| Daily rate (₹52,000 ÷ 26) | ₹2,000 |
| Hourly rate (₹2,000 ÷ 8) | ₹250 |
| Overtime rate (twice) | ₹500 an hour |
| Hours beyond 48 that week | 4 |
| Overtime pay | ₹2,000 |
Many payroll teams still pay overtime on basic alone. Don’t. A Labour Ministry FAQ of 16 March 2026 confirmed the base is “wages” as defined, which after the 50% rule is often well above basic for a typical Indian salary structure.
Managers and supervisors are usually outside these overtime rules. Their hours are set by contract.
How does attendance feed payroll and LOP?
Every unapproved absence becomes loss of pay, so the attendance cut-off drives the payroll date.
Lock attendance a few days before the run. Monthly wages are due before the 7th of the following month. An HRIS can hold the muster roll in Form IX electronically.
Under an EOR, your managers approve leave and confirm timesheets. The EOR applies state rules, keeps the registers and pays. Clear split.
How does Remunance handle attendance and leave for your India team?
Leave administration and Shops and Establishments registration sit inside Remunance’s standard statutory scope. We run them across 34 Indian cities, each with its own state rules. Our story on simplifying leave policies for a balanced workforce shows the approach. Have your India leave policy checked against state law.
What else do people ask about leave management systems?
How many leaves are mandatory in India?
It depends on the state. In Maharashtra, it is 8 casual leave days, earned leave at 1 day per 20 days worked and 8 paid festival holidays.
Is sick leave mandatory in Maharashtra?
The Maharashtra Act sets casual and earned leave rather than a separate sick leave quota. ESI-covered employees get sickness benefit through ESIC.
Can unused leave be encashed in India?
Yes. Under the OSH Code, annual leave can be encashed at year-end on demand and on exit.
Planning a hire in India?
Our founding team has run payroll and hiring in India for 22+ years, first as Remunance Systems, which was later acquired by ADP.