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Leave and Working Hours /
Telangana

Leave and Working Hours Policy 2025: Telangana

Telangana continues to evolve into one of India’s most tech-forward and industrially robust states. With Hyderabad at its core, which is home to IT giants, pharma hubs, and a buzzing manufacturing base, the state’s workforce policies must strike a balance between productivity and well-being.

This guide dives into the essentials of managing leave, working hours, overtime, and compliance in 2025. Whether you’re handling weekend shifts in Genome Valley or festival leave in Madhapur, this article is anchored in the Telangana Shops and Establishments Act, 1988 for private employees and Telangana Fundamental Rules for government staff—has your HR team covered.

Leave Rules

Private Sector (Shops, Industrial, Factories)

Leave TypeEntitlementNotes
Earned Leave (EL) 15 days/year Accrues at 1 day per 20 days worked (240 days required); max 45 days carry-forward; encashable per employer policy.
Casual/Sick Leave 12 days/year (combined)Full pay; no carry-forward; lapses if unused; medical certificate required for sick leave.
Festival/National Holidays 8 days/year Includes Republic Day, Sankranti, Diwali; state-notified.
Maternity Leave26 weeks (180 days) Per Maternity Benefit Act, 1961; for women with <2 surviving children; 6 weeks for miscarriage; requires 80 days worked in prior 12 months.
Paternity Leave Not specified May be offered at employer’s discretion; no mandatory provision.

Government Sector (Telangana Fundamental Rules)

Leave TypeEntitlement Notes
Earned Leave 30 days/year Max 300 days carry-forward; encashable per policy.
Casual Leave 12 days/year Full pay; no carry-forward; lapses if unused.
Half Pay Leave (HPL) 20 days/year Credited 10 days biannually; half pay; for medical/private reasons.
Maternity Leave 180 days For <2 surviving children; 6 weeks for miscarriage.
Paternity Leave15 days For <2 surviving children; full pay; combinable with other leaves.
Extraordinary Leave (EOL) 5 years max Unpaid; for special circumstances.
Study Leave 2–3 years For higher studies/training; pay per regulations.

HR Actionable Tips

  • Festival-ready scheduling: Launch a Sankranti-specific planning dashboard to encourage staggered leave in Hyderabad offices, ensuring client deliverables aren’t disrupted.
  • Encouragement-based usage: Notify employees quarterly if leave is underutilized to avoid burnout and promote work-life balance.
  • Unified dashboards: Integrate attendance, leave balances, and approval timelines into one mobile-friendly platform like Keka HR, reducing turnaround time by 30%.

Working Hours Rules

Standard Working Hours 

Rule Details
Daily Limit 8 hours/day (shops); 9 hours/day (industrial/factories)
Weekly Limit 48 hours/week (shops/industrial); 60 hours/week (factories)
Breaks 30-minute break after 5 hours (shops/industrial/factories)
Weekly Off One day off per week, typically Sunday

Overtime Rules

Rule Details
Max Overtime 75 hours/quarter (shops/industrial); 150 hours/quarter (factories)
Overtime Pay Rate2x regular wages
Approval Required? Yes, prior employee consent

HR Actionable Tips

  • Dynamic shift maps: Use geo-tagged check-ins and digital shift maps via Keka HR to streamline factory rosters around Hyderabad’s traffic congestion zones.
  • Overtime forecasting: Build a predictive model based on production spikes (e.g., drug trial season in pharma) to preemptively distribute OT hours fairly.
  • Gender-sensitivity safety: Introduce a “Safe Commute Guarantee” for female employees in night shifts, partnering with verified transport providers and setting up emergency response triggers.

Additional Provisions

  • Night Work for Women: Restricted between 7:00 PM and 6:00 AM unless exempted. Exempted roles must ensure transport, rest areas, and verified safety mechanisms.
  • Record Keeping: Monthly logs for attendance, OT, wages, and leave are mandatory—either digitally or in physical registers—for inspection readiness.
  • IT/ITES Exemptions: Eligible for relaxed working hour norms, subject to approval from Telangana’s Labour Department.
  • Mandatory Online Registration: New establishments must register with the Labour Department within 30 days of starting operations.
  • Penalties under Telangana Shops and Establishments Act:
    • Hours/leave violations: ₹200–₹2,000
    • Failure to register establishment: ₹500–₹5,000
    • Obstructing inspector: ₹1,000–₹10,000 or up to 3 months jail

Got questions?

How can pharma companies handle earned leave?

Pharma workers earn 15 days annually, which can be tracked and encashed through HR software like Keka, with a carry-forward limit of 45 days. 

Is overtime capped in Hyderabad’s tech industry?

Yes, private IT employees cannot exceed 75 hours/quarter without consent. All OT must be paid at double the hourly rate. 

Can casual and sick leave be split in private companies?

No, they are combined into a single 12-day entitlement and are not carried over into the next year. 

Can work from home be an official option during festivals?

Yes, employers can approve WFH on non-official holidays like Sankranti, especially in the IT and back-office sectors. 

How are contract IT staff handled for leave?

Contract staff earn prorated earned leave and receive 12 days of combined casual/sick leave like regular employees. 

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