Sick Leave (SL) in India
Last updated: 13 July 2026. General explainer, not legal or tax advice.
What sick leave is
Sick leave, or SL, is paid leave for illness or medical recovery. For a day or two most policies need no proof, while a longer spell may need a medical certificate. It exists so an unwell employee can rest without losing pay, which also keeps illness from spreading through a workplace.
How much, and who decides
The number of sick days and the certificate rule are set by the state Shops and Establishments Act and the company leave policy. As with casual leave, there is no single national figure, so the entitlement should be read from the policy that applies to the workplace.
Sick leave and ESI sickness benefit
These are two different things. Sick leave is paid by the employer under the leave policy. For an employee covered by employee state insurance, the ESI scheme provides a separate sickness benefit, a cash payment during a certified illness of a qualifying length. One comes from the employer, the other from the ESI fund.
Records and fair use
A clear certificate rule for longer absences, and a tracked sick leave balance, keep the leave fair to both sides. The employee knows what they are entitled to, and the employer has a record if a pattern needs a conversation.
Sick leave policy and medical certificates
A sick leave policy mostly turns on one question, when is a medical certificate needed. A common line is that short absences of a day or two need none, while anything longer needs a certificate. Setting that threshold clearly protects both sides, the employee is not asked for a note for a single off day, and the employer has proof for a longer spell.
The policy should also say how sick leave interacts with employee state insurance for covered staff, so an employee on a longer certified illness knows whether they are drawing sick leave, the ESI sickness benefit, or moving from one to the other.
Worked example
An employee is unwell for three days and, as the policy asks for absences beyond two days, submits a medical certificate. The days are paid from the sick leave balance. If the employee is ESI covered and the illness runs longer, an ESI sickness benefit may also apply.
Related terms
Frequently asked questions
What is sick leave?
Paid leave for illness or medical recovery. Longer spells may require a medical certificate, depending on company policy.
How many sick leaves are allowed?
It depends on the state Shops and Establishments Act and the company policy, so there is no single national figure.
Is sick leave different from ESI sickness benefit?
Yes. Sick leave is paid by the employer under the leave policy. ESI sickness benefit is a separate payment from the ESI fund for covered employees during a certified illness.
Do I need a medical certificate for sick leave?
Usually only for longer absences, as the company policy sets. Short spells of a day or two often need none.
Can sick leave be carried forward?
It depends on the policy. Some allow limited carry forward, many do not, and sick leave is generally not encashable.
When is a medical certificate needed for sick leave?
Commonly for absences beyond a day or two, with the exact threshold set by the company policy. Short spells often need none.
How does sick leave work with ESI for covered employees?
Sick leave is paid by the employer. For a longer certified illness, an ESI covered employee may draw the separate ESI sickness benefit, which the policy should explain.
Sources and official references
The rules and figures on this page trace to the official sources below. Statutory amounts and dates change, so confirm the current number on the source before you act on it.
How Offrd helps
Offrd records leave by type, so sick leave is tracked against balance and shows correctly on the payslip.