← GlossaryLeave & Attendance

Earned Leave (Privilege Leave)

Leave accrued based on time worked, which can typically be carried forward or encashed, unlike casual or sick leave.

Earned Leave, also called Privilege Leave, accrues based on time actually worked — commonly 1 to 1.5 days per month — and is the leave category most closely tied to compensation, since it can usually be carried forward across years or encashed for cash.

Because it accrues and often has monetary value attached, Earned Leave balances are one of the numbers most frequently disputed in manual, spreadsheet-tracked HR systems — a mismatch between what an employee remembers and what's recorded is a common source of payroll and Full & Final Settlement disputes.

MedleyHR handles PF, ESI, TDS, and Form 16 automatically — free for up to 10 employees. Start free →

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