The Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code), announced by the Indian government on November 21, 2025, introduces several important changes for salaried employees. Most notably, employees are now eligible for earned leave after completing 180 days of continuous service, a reduction from the previous 240-day requirement under the Factories Act of 1948. Additionally, the new code allows for annual encashment of unused earned leaves, a benefit that was previously limited to specific states.

Under the new provisions, if an employer denies a leave request, the employee's unused leave cannot be forfeited and must be carried forward indefinitely. This change is particularly beneficial for workers in sectors where taking leave is often challenging due to operational constraints. The OSH Code creates a statutory right for leave entitlements, ensuring that employees can receive compensation for accumulated leaves, thus enhancing their financial predictability.

However, these provisions do not apply to managerial or administrative employees earning more than ₹18,000 per month. While the OSH Code aims to standardize leave entitlements across India, some states have yet to implement these changes, meaning that employees should check with their employers regarding the applicability of these benefits.