Leave Type Configuration

Leave Type Configuration defines the leave policies for the organisation -- types of leave, entitlement rules, carry-forward policies, and encashment...

2026-02-17 · 2 min

Manual area

People

Coverage

3 sections

Operator notes

1 implementation note

Overview

Leave Type Configuration defines the leave policies for the organisation -- types of leave, entitlement rules, carry-forward policies, and encashment eligibility. These configurations drive the entire leave management and payroll deduction system.

Configuring Leave Types

Navigate to HR > Settings > Leave Configuration:

Create leave types: Casual Leave, Sick Leave, Earned Leave, Maternity, Paternity, Comp Off, LWP.
Annual entitlement: number of days credited per year.
Credit frequency: Annual (all at once) or Monthly (pro-rata).
Carry-forward: enable/disable, set maximum days.
Encashment: enable for earned leave, set rate.
Probation applicability: leave available during probation or only after confirmation.
Minimum/maximum consecutive days: restrict leave duration per application.

Holiday Calendar

Configure the holiday calendar:

Add national holidays, state-specific holidays, and optional holidays.
Link holidays to leave policy: working on a holiday earns a comp-off.
Different holiday lists for different employee groups if applicable.
Holiday calendar impacts attendance and payroll calculations.

Notes

Tip

Define leave policies before the payroll go-live. Leave configurations directly affect salary computation, so get them reviewed by HR and Legal.

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