What are restricted holidays? Meaning and rules in India

Article5 mins read212 views | Posted on October 26, 2024 | By Team Zoho Payroll

Restricted holidays are a flexible type of leave that allows employees to take time off for personal, religious, or cultural events outside of fixed company holidays, such as, sick leave, casual leave, and privilege leave.

This option, often part of an organization’s leave policy, gives employees the freedom to take breaks with prior approval. If you’re an employer looking to add restricted holidays to your leave policy, this article will walk you through their purpose, eligibility, and how they can benefit both your team and your workplace culture.

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Introduction to restricted holidays in India

India celebrates a wide range of festivals and occasions throughout the year, with each state observing unique celebrations based on region, religion, and culture.

Therefore, it's important for employers to provide holidays that allow employees to enjoy their festivals without taking Loss of Pay leave. Restricted holidays are one such type of leave that you can offer your employees.

Restricted holiday meaning

A restricted holiday is a paid, optional holiday that an employee can choose to avail based on their cultural needs. These holidays are usually granted during regional festivities, allowing employees to celebrate with their families.

A company’s holiday list can include multiple restricted holidays, keeping in mind the cultural diversity across the country. Employees can select a specific number of days from the holiday list provided by the company. Since not all employees typically take leave on the same day, the company can continue its operations on these days. This approach ensures a balance between organisational operations and employee well-being.

Who is eligible for a restricted holiday?

All government organisations must include restricted holidays in their holiday calendar. Consequently, government employees in the public sector can take restricted leaves during regional festivals, subject to employer approval.

However, if you are an employer in a private organisation, it is not mandatory to offer restricted holidays to your employees. Nevertheless, you can choose to incorporate restricted holidays based on your leave policy, to help accommodate employees' cultural preferences.

How many restricted holidays an employee can take in a year?

The number of restricted holidays an employer can offer is determined by the organisation's leave policies, management decisions, and government guidelines.

In India, government organisations provide 2 days of restricted holidays during a calendar year.  These restricted holidays are in addition to the 2 national holidays and 14 gazetted holidays available to public sector employees.

In private companies, the employer has the discretion to decide the number of restricted holidays applicable to their employees.

Can restricted holidays be combined with other leave?

Employers generally allow employees to combine restricted holidays with casual leave. However, they typically do not permit combining restricted holidays with other types of leave, such as sick leave.

Restricted holiday list 2024

The Central Government of India publishes a list of restricted holidays every year. These holidays may vary from state to state due to cultural differences, but employers can use this list as a framework to create their own holiday schedule.

Here is the list of restricted holidays for 2024, published by the Central Government of India for offices located in New Delhi:

Name of restricted holidayDate
New Year’s Day1st January
Lohri13th January
Makar Sankranti14th January
Magha Bihu/ Pongal15th January
Guru Gobind Singh’s Birthday17th January
Hazarat Ali’s Birthday25th January
Sri Panchami, Basant Panchami14th February
Shivaji Jayanti19th February
Guru Ravi Das’s Birthday24th February
Birthday of Swami Dayananda Saraswati6th March
Maha Shivratri8th March
Holika Dahan24th March
Dolyatra25th March
Easter Sunday31st March
Jamat-Ul-Vida5th April
Chaitra Sukladi / Gudi Padava / Ugadi/ Cheti Chand9th April
Vaisakhi / Vishu13th April
Meshadi (Tamil New Year’s Day) / Vaisakhadi (Bengal) / Bahag Bihu (Assam)14th April
Birthday of Guru Rabindranath Tagore8th May
Rath Yatra7th July
Parsi New Year's Day / Nauraj15th August
Raksha Bandhan19th August
Ganesh Chaturthi / Vinayaka Chaturthi7th September
Onam or Thiru Onam Day15th September
Dussehra (Saptami)10th October
Dussehra (Mahashtami) / Dussehra (Mahanavmi)11th October
Maharishi Valmiki’s Birthday17th October
Karaka Chaturthi (Karwa Chauth)20th October
Naraka Chaturdasi31st October
Govardhan Puja2nd November
Bhai Duj3rd November
Pratihar Sashthi or Surya Shashthi (Chhat Puja)7th November
Guru Teg Bahadur’s Martyrdom Day24th November
Christmas Eve25th December

Difference between gazetted holiday and restricted holiday

Restricted holidayGazetted holiday
Optional holidays for private sector employeesMandatory holiday for employees in the private sector
Employers grant these holidays on various occasions, allowing employees to choose which ones they want to takeEmployers grant these holidays to all employees, regardless of their religious or cultural backgrounds
Employers can maintain continuous business operations since only a few employees take these holidays at a timeThe entire organisational operation remains closed on gazetted holidays

Importance of a restricted holiday for an organisation

  • Promotes inclusivity and diversity

India is a secular country with a workforce comprising individuals from various cultural and religious backgrounds. By including restricted holidays, employers can foster an environment that promotes inclusivity and diversity. Providing such holidays makes employees feel valued and respected throughout the calendar year. 

  • Flexibility for employees

Including restricted holidays in the work schedule allows employers to offer a more flexible work culture. This flexibility enables employees to observe holidays according to their cultural preferences and contribute to their job satisfaction.

  • Compliance with labour laws

Government organisations are required to provide restricted holidays to their employees as part of anti-discrimination measures, in alignment with payroll laws. This promotes equality and unbiased treatment, helping to build a positive employer-employee relationship.

Overall, a restricted holiday plays a crucial role in mediating the relationship between employers and employees. Including such holidays in your annual leave list can boost productivity and contribute to higher profitability.

Frequently asked questions

What are the restricted holiday rules for central government employees?

All Central Government employees in India are eligible for two restricted holidays in a calendar year, based on advance notice and approval from the management.

What is the rule of restricted holidays for state government employees?

Indian states have diverse regional and cultural festival celebrations, leading to restricted holidays being set at the discretion of the state government. The specific holidays can vary,  depending on the operational state of the government organisation.

How to apply for a restricted holiday?

The majority of employers nowadays use cloud-based software for payroll and leave management. As an employer, you can enable your employees to use your chosen software to apply for restricted holidays.

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