Restricted holidays

With restricted holidays, employees get flexibility to take time off from a predefined list in addition to mandatory holidays.

Restricted holiday meaning

"Restricted holidays" refer to a list of holidays that are recognized by an organization but are not given as holidays for all employees. Employees can choose to take the restricted holidays (limited) based on their personal, cultural, or religious preferences

Restricted holidays are also called as floater holidays or optional holidays.

How restricted or floater holidays work?

A company at the start of the year will release the list of mandatory/public holidays and restricted holidays. The company will also tell how many restricted holidays an employee can take. 

For example, a company can give 10 public holidays and 3 restricted holidays in a list for the year. Every employee can avail 1 restricted holiday annually. 

In this case, an employee will get 10 mandatory holidays + 1 restricted holiday which they can choose from the list of 3 restricted holidays.

Restricted holidays 2026

Here is the list of restricted holidays central government of India gives. You can choose the holidays and add it to the restricted holiday list.

Examples of Restricted Holidays 2026(Vary by location/company):

• Makar Sankranti 
• Maha Shivratri
• Ram Navami
• Ganesh Chaturthi
• Raksha Bandhan
• Bhai Duj
• Guru Nanak's Jayanti
• Good Friday
• Budha Purnima
• Onam

Key characteristics of restricted holidays

• Optional in nature: Employees can choose whether or not to take them.
• Limited in number: Only a fixed number of restricted holidays can be availed each year.
• Policy-driven: Governed by the company’s leave policy, not by law.
• Choice-based: Employees select holidays based on personal, cultural, or religious preferences.
• Approval-dependent: Subject to manager or HR approval.
• Non-transferable: Cannot be carried forward or transferred to another year.
• Usually non-encashable: Commonly not eligible for leave encashment.

Who is eligible for restricted holidays?

Eligibility for restricted (floater) holidays depends on the company’s leave policy.

• Full-time employees: Usually eligible to avail restricted holidays.
  
• Contractual employees: Eligibility varies and depends on employment terms.
  
• Employees on probation: Often not eligible or allowed only after confirmation.
  
• Interns and consultants: Generally not eligible unless stated otherwise.
  
• Employees joining mid-year: May be eligible, with holidays limited based on joining date.

Types of holidays in private companies

1. Mandatory holidays (National, festival and regional holidays)

2. Restricted holidays (Festival and regional holidays)

3. Weekend holidays (Saturdays and Sundays)

Difference between restricted holiday and mandatory holiday

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How many restricted holidays can be taken in a year?

It is up to the company to decide. Some companies don’t give any restricted holidays. Generally, private companies give anywhere between 1 to 4 restricted holidays.

Can you encash restricted holidays? 

It is based on the company’s leave policy. Commonly, restricted holidays are not applicable for encashment. Casual and sick leaves are considered for encashment.