PSU Leave & Benefits Rules 2026: Earned, Casual, Maternity & More

New Delhi: Public Sector Undertakings (PSUs) in India, including Maharatna, Navratna, and Miniratna companies, follow leave and benefits rules largely aligned with Central Civil Services (CCS) Leave Rules, 1972, as updated by the Department of Personnel and Training (DoPT).

These rules apply to most Central Government-controlled PSUs, with minor variations based on company-specific policies approved by their Boards within DPE (Department of Public Enterprises) guidelines. As of March 2026, no major nationwide changes have occurred post the last consolidated update (September 2024), but provisions remain employee-friendly with full/partial pay benefits.

This fresh guide covers key leave types, entitlements, encashment, and other benefits, based on official DoPT notifications, DPE guidelines, and recent clarifications (e.g., alignment with Rights of Persons with Disabilities Act, 2016).

Key Leave Types & Entitlements in PSUs (Aligned with CCS Rules)

1. Earned Leave (EL) / Privilege Leave

   • Entitlement: 30 days credited annually (15 days each on January 1 and July 1).

   • Accumulation Limit: Up to 300 days maximum.

   • Usage: For vacations, personal reasons; can be combined with other leaves.

   • Encashment: Up to 300 days on retirement/superannuation or absorption in PSU/autonomous body (cash equivalent based on last pay + DA). Also, up to 10 days encashable with LTC (Leave Travel Concession) once per block.

   • Note: In vacation departments (rare in PSUs), adjustments apply if full vacation is availed.

2. Half Pay Leave (HPL) / Leave on Half Pay

   • Entitlement: 20 days per completed year (10 days credited twice a year).

   • Usage: On medical certificate or private affairs; convertible to full pay via commuted leave.

   • Encashment: Included in the 300-day ceiling with EL on retirement (no separate encashment of sick leave variants).

   • Commuted Leave: Up to half of HPL due, on medical certificate; debited as double from HPL but paid at full rate (first 120 days full pay, rest half pay in extended cases).

3. Casual Leave (CL)

   • Entitlement: 8 days per calendar year (reduced from 12 days since 1998; some PSUs allow up to 12 via internal policy).

   • Usage: For short personal emergencies; not debited to leave account. Max 5–8 days at a stretch.

   • Combination: Can prefix/suffix with holidays/Sundays; combinable with Special Casual Leave but not regular leaves.

4. Maternity Leave (ML)

   • Entitlement: 180 days (6 months) on full pay for female employees with less than two surviving children (aligned with Maternity Benefit Act, 1961, and CCS).

   • Usage: From pregnancy/delivery; combinable with other leaves.

   • Additional: 12 weeks for miscarriage/medical termination; crèche facilities in large establishments (50+ employees).

5. Paternity Leave & Child Care Leave (CCL)

   • Paternity Leave: 15 days on full pay (within 6 months of childbirth/adoption; less than two surviving children).

   • Child Care Leave (CCL): Up to 730 days (2 years) during entire service for women (and extended to single male parents in recent amendments).

     • First 365 days: 100% pay.

     • Next 365 days: 80% pay.

     • Max 3–6 spells per year (depending on category); for minor children (up to 18 years or disabled).

   • Adoption/Child Adoption Leave: 180–365 days similar to maternity/child care.

6. Other Special Leaves

   • Extraordinary Leave (EOL): Without pay; up to 5 years continuous absence may imply deemed resignation.

   • Study Leave: For higher education/training (after 5+ years service).

   • Work Related Illness/Injury Leave (WRIIL): Full pay during hospitalization/treatment for duty-related issues (replaced special disability/hospital leave).

   • Special Casual Leave: 4 days extra for employees with benchmark disabilities (per 2018 amendments aligning with RPwD Act, 2016).

Additional Benefits & Rules in PSUs

• Encashment on Retirement/Absorption: Full cash equivalent (up to 300 days EL + HPL) based on last pay + DA; follows CCS pattern.

• LTC (Leave Travel Concession): Available as per CCS (LTC) Rules; encash EL up to 10 days during LTC blocks (current: 2022–2025, next 2026–2029).

• Special Provisions: For employees in difficult areas (e.g., Kashmir Valley extensions); disability-related allowances (e.g., CEA doubled for disabled children).

• Variations in PSUs: Board-approved rules may offer slight enhancements (e.g., more CL in some Navratna firms), but core entitlements match CCS to ensure uniformity. No major 2025–2026 amendments noted beyond disability alignments (2018 onward).

Important Conditions

• Leave is not a right; can be refused/revoked for service exigencies.

• Continuous absence >5 years (except foreign service) implies deemed resignation.

• Medical certificates required for HPL/commuted/special leaves.

• PSUs under DPE guidelines avoid deviations (e.g., no encashment of sick leave beyond limits).

For PSU employees: Check your company's HR policy or service rules booklet for any board-specific tweaks. Always refer to latest DoPT circulars (updated as on Sept 2024) or DPE guidelines for official verification.