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India Public Holiday Regulations
In India, employees have a legal right to certain paid public holidays, but the specifics depend on the region and applicable employment laws. There are three national holidays recognized across the entire country: Republic Day (January 26), Independence Day (August 15), and Gandhi Jayanti (October 2). All employers must observe these as paid days off. Beyond these, each state determines its own list of public holidays, often reflecting local festivals, cultural observances, or regional events.
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List of Public Holidays in India in 2025
Below is a list of major public holidays observed across India in 2025, including the three mandatory national holidays and several commonly recognized festivals. Actual observance varies by state.
These holidays represent the most widely observed public holidays across India, though employers should verify additional state-specific holidays based on their employees’ work locations.
Do Employers Have to Provide Paid Leave on Public Holidays?
Yes, Indian labor law requires employers to provide paid leave on public holidays, especially for the three national holidays mentioned above. Employees working on these days must receive double wages or a compensatory day off, depending on company policy and the applicable state law.
For other regional or religious holidays, entitlement depends on the State Shops and Establishments Act, which sets the minimum number of paid holidays per year. Full-time employees are generally entitled to all declared holidays, while part-time or contractual workers may have different terms based on their employment contracts. Public holidays in India are not deducted from annual leave balances. They are separate paid entitlements.
Legal Penalties for Not Providing Paid Holiday Leave
Failing to provide paid leave for mandatory holidays is a legal offense under Indian labor law. Non-compliance can result in fines ranging from INR 500 to INR 3,000 per instance, depending on the state and the nature of the violation. Repeated or willful non-compliance can also lead to prosecution or higher penalties under the Shops and Establishments Acts or the Factories Act.
Violations most often occur with casual, temporary, or probationary workers, where employers may assume exemptions apply. Labor inspectors can take action against employers for failing to comply, and employees can file grievances with local labor authorities. To avoid violations, employers should maintain a clearly communicated list of public holidays, include them in employment contracts or policies, and ensure accurate payroll adjustments for employees who work on those days.
How Do Holidays Affect Overtime Thresholds?
Public holidays do not count as regular working days under Indian law. If employees work on a public holiday, that work is treated as overtime. Employers must pay at least double the regular rate of pay or provide a substitute paid day off, depending on the employee’s role and local regulations. This ensures fair compensation for any additional effort during officially recognized holidays.
Stay 100% Compliant with Leave Regulations Using Playroll
Leave entitlements in India can get complicated, with public holidays varying by state, religious observance, and industry. Managing this complexity accurately is essential to stay compliant and maintain good employee relations.
Playroll takes the guesswork out of managing holiday pay and leave entitlements. The platform automatically tracks changes in India’s labor laws and applies the correct holiday and leave policies for each employee, whether they’re in Mumbai, Bengaluru, or New Delhi. By integrating compliance directly into payroll, Playroll ensures your business stays ahead of local requirements, minimizes errors, prevents penalties, and keeps your team happy. Partner with Playroll to simplify global leave management and guarantee your employees get exactly what they’re entitled to, no matter where they work.

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