What is a Restricted Holiday? Meaning, Rules & Complete List for 2026

A restricted holiday in India is a paid, optional day off that employees can choose from a government-approved list based on their personal, cultural, or religious preferences. Central government employees can select up to 2 days per year from a list of 30 occasions published by the Department of Personnel and Training (DoPT). Unlike gazetted holidays where all offices close, the organization stays open on restricted holiday days and only approved employees take leave.

India celebrates hundreds of festivals spanning dozens of religions and regional traditions. No single holiday calendar can cover every occasion, which is exactly why restricted holidays exist. They give employees genuine flexibility without requiring blanket shutdowns.

If you manage HR, run payroll, or simply want to understand your own leave rights, this guide covers everything you need to know about restricted holidays in India for 2026.

Last updated: March 2026 | Reviewed by Antonio Varghese, SHRM-CP | Source: DoPT Official Notification 2026

What is a Restricted Holiday?

A restricted holiday is a day listed by the government on which offices do not close by default, but employees may choose to take the day off. The term “restricted” does not mean the holiday is limited or banned. It means the holiday is available at the employee’s discretion, subject to approval.

The Department of Personnel and Training (DoPT), under the Government of India, publishes two holiday lists every year:

• Gazetted holidays: Mandatory closures for all central government offices. Everyone gets these off.
• Restricted holidays: A longer list from which employees may choose a limited number (usually 2) based on personal, religious, or cultural preference.

Private companies are not legally bound by the DoPT list but many use it as a reference when designing their own leave management policy. State governments also publish their own lists, which may differ from the central list.

Other common names for restricted holidays include optional holidays, floater holidays, and discretionary holidays. Regardless of the label, the concept is the same: the employee picks the day, the employer approves it.

The International Labour Organization has long advocated for inclusive leave policies that respect cultural diversity in the workplace. India’s restricted holiday system is one practical implementation of that principle.

Restricted Holiday vs Gazetted Holiday

Understanding the difference between restricted and gazetted holidays is important for both HR teams and employees. Here is a side-by-side comparison:

The key distinction is choice. Gazetted holidays are universal and non-negotiable. Restricted holidays respect individual preferences by letting each employee select the days that matter most to them.

Complete List of Restricted Holidays in India 2026 (DoPT)

The following table shows the full list of restricted holidays for central government employees in 2026, as published by the Department of Personnel and Training. Private companies and state governments may adopt a subset of this list or publish their own. You can verify the official list at india.gov.in/calendar.

Central government employees may select any 2 holidays from this list in a calendar year. Some departments allow a third choice in special circumstances, but 2 is the standard entitlement.

Restricted Holidays: State-Wise Variations

India’s federal structure means each state government publishes its own holiday list, which can differ significantly from the central DoPT list. Here is how it works in practice:

How State Lists Differ from the Central List

State governments customize their restricted holiday lists to reflect local festivals and demographics. For example:

• Telangana and Andhra Pradesh include Bathukamma, Bonalu, and Deccan Liberation Day.
• Kerala includes Onam, Vishu, and Thiruvonam as either gazetted or restricted holidays.
• West Bengal has an extensive list covering Durga Puja events (Saptami, Ashtami, Navami) as restricted or optional holidays.
• Punjab adds several Gurpurab and regional Sikh observances to its restricted holiday list.

If your company operates across multiple states, managing overlapping and conflicting holiday lists is one of the most common HR compliance challenges. A centralized HRMS portal with location-based holiday calendars solves this by automatically applying the correct list to each employee based on their work location.

Private Sector Flexibility

Private companies are not bound by the DoPT restricted holiday list. However, most mid-size and large employers in India adopt one of these approaches:

• Use the DoPT list as a starting point and customize it based on workforce demographics.
• Offer a set number of “floater” holidays (typically 2 to 4) that employees can use on any occasion they choose.
• Combine the state government list with additional company-specific optional holidays.

Regardless of the approach, documenting your restricted holiday policy clearly and making it accessible through your leave management system is essential for consistency and compliance.

Are Restricted Holidays Paid or Unpaid?

This is one of the most common questions employees and HR teams have. The answer depends on the sector:

Government Sector

For central and state government employees, restricted holidays are paid. When an employee selects a restricted holiday from the DoPT list and gets approval, they receive their normal salary for that day. There is no deduction in pay or leave balance (the restricted holiday does not consume a casual leave or earned leave day).

Private Sector

In the private sector, the pay status of restricted holidays depends entirely on company policy. There are three common approaches:

• Fully paid: The company treats restricted holidays like any other paid holiday. This is the most employee-friendly approach and is common among large employers.
• Deducted from leave balance: Some companies count a restricted holiday against the employee’s casual leave or privilege leave balance. The employee gets the day off but “pays” for it from their leave quota.
• Unpaid: A small number of companies, particularly startups and very small businesses, may treat optional holidays as unpaid unless the employee uses a regular leave day.

If you run payroll for a company with multiple holiday types, configuring your payroll software to handle restricted holidays correctly is critical to avoid pay discrepancies. Incorrect holiday pay calculations are a common source of employee grievances and payroll compliance issues.

How Many Restricted Holidays Can an Employee Take?

The number of restricted holidays an employee can take varies by employer type:

• Central government: 2 restricted holidays per calendar year from the DoPT list.
• State government: Varies by state. Most states allow 2 to 3 restricted holidays. Some states are more generous.
• Private sector: Depends on company policy. Most companies offer 2 to 4 floater or restricted holidays per year. Some offer up to 5.

Employees cannot exceed their allotted number of restricted holidays, even if the DoPT or state list includes 30 or more occasions. The list provides options; the policy sets the limit.

Eligibility for Restricted Holidays

Eligibility criteria for restricted holidays typically include the following:

• Employment status: The employee must be a confirmed or probationary employee. Contract workers and daily wage earners may or may not be eligible depending on company policy.
• Advance intimation: Employees must inform their supervisor or HR team in advance (usually at least 3 working days before the holiday). Last-minute requests may be denied.
• Approval requirement: A restricted holiday is not automatic. The employee must submit a request through the leave management system or directly to their reporting manager, and it must be approved.
• Cannot be claimed retroactively: If the employee works on a restricted holiday without prior leave approval, they cannot later claim that day as a restricted holiday.

Defining clear eligibility rules in your leave policy helps avoid confusion and disputes. HR leave policy templates can help you get started with a ready-made framework that covers restricted holidays and other leave types.

Restricted Holiday Rules in India

Here are the key rules governing restricted holidays for central government employees. Private companies may adapt these rules in their own policies:

• Restricted holidays are published annually by the DoPT along with the gazetted holiday list.
• An employee may avail a maximum of 2 restricted holidays in a calendar year.
• A restricted holiday can be taken only on the date specified in the list. It cannot be taken on a different date.
• Prior intimation to the controlling officer is mandatory. Requests made on the day itself may be denied.
• A restricted holiday cannot be refused by the employer unless the employee’s presence is essential for urgent work. Even then, the refusal must be documented.
• Restricted holidays are not debited from casual leave, earned leave, or any other leave account.
• Half-day restricted holidays are not permitted. Each restricted holiday counts as a full day.
• If a restricted holiday falls on a weekly off or another gazetted holiday, it cannot be substituted with a different date.

For HR teams managing multi-location workforces, keeping track of all these rules across central and state government lists can be challenging. An automated attendance management system integrated with your holiday calendar simplifies compliance by applying the correct rules automatically.

Can Restricted Holidays Be Carried Forward?

No. Restricted holidays cannot be carried forward to the next calendar year. If an employee does not use their allotted restricted holidays within the year, they lapse. There is no encashment or accumulation.

This “use it or lose it” rule applies to both government and private sector employees (where the company offers restricted holidays). HR teams should send periodic reminders, especially in Q4, so employees do not lose their entitlement simply because they forgot.

A well-configured leave management system can automate these reminders and display remaining restricted holiday balances on each employee’s dashboard.

Combining Restricted Holidays with Other Leaves

Employees often want to combine a restricted holiday with weekends or other leave types to create a longer break. Here is how it works:

Government Sector Rules

Central government employees can combine a restricted holiday with a weekend to get a longer break (for example, taking a restricted holiday on a Friday gives a three-day weekend). However, there are restrictions on combining restricted holidays with casual leave or other leave types in certain departments. Employees should check their department-specific orders.

Private Sector Practices

Most private companies allow employees to combine restricted holidays with casual leave, privilege leave, or weekends. This is one of the advantages of the restricted holiday system: it gives employees flexibility to plan meaningful breaks around occasions that matter to them.

The Smart Long Weekends section later in this guide shows specific combinations for 2026 that employees can use for extended breaks.

How to Apply for a Restricted Holiday (Step by Step)

Whether you are a government employee or work in the private sector, the process for applying for a restricted holiday typically follows these steps:

Step 1: Check the Restricted Holiday List

Review your organization’s restricted holiday list for the current year. Government employees should refer to the DoPT list. Private sector employees should check their company’s HR portal or leave management system.

Step 2: Verify Your Balance

Confirm how many restricted holidays you have remaining for the year. Most HRMS portal dashboards display this alongside your other leave balances.

Step 3: Submit Your Request in Advance

Apply for the restricted holiday at least 3 working days before the date. Use your company’s leave management tool, email your manager, or follow whatever process your organization requires.

Step 4: Get Approval

Wait for your manager or HR to approve the request. Restricted holidays require approval but cannot be unreasonably denied. If your request is rejected, the employer should provide a valid reason.

Step 5: Confirm on Your Calendar

Once approved, mark the day on your calendar and inform your team so they can plan around your absence.

Using a digital leave management system streamlines this entire process. Employees apply with a few clicks, managers approve from their dashboard, and attendance records update automatically.

HR Manager’s Guide to Restricted Holiday Management

Managing restricted holidays effectively requires clear policies, proper tools, and proactive communication. Here is a practical guide for HR managers:

Draft a Clear Restricted Holiday Policy

Your policy should cover: the number of restricted holidays offered, the approved list of occasions, eligibility criteria, application process, approval workflow, and pay rules (paid, deducted from leave, or unpaid). Reference SHRM guidelines for best practices on structuring inclusive leave policies.

Publish the Holiday List Early

Share the restricted holiday list with all employees at the start of each calendar year. Include it in your onboarding materials for new hires joining mid-year.

Use a Leave Management System

Manual tracking of restricted holidays via spreadsheets leads to errors, especially in organizations with 50+ employees. A dedicated leave management system lets you configure restricted holidays as a separate leave type with its own balance, approval rules, and reporting.

Handle Multi-Location Complexity

If your company operates in multiple states, you need location-based holiday calendars. Employees in Hyderabad may celebrate Bathukamma while employees in Kolkata observe Durga Puja. Your system should apply the correct list based on each employee’s work location.

Send Timely Reminders

Many employees forget to use their restricted holidays until December. Send a reminder in October or November to avoid a rush of last-minute requests.

Track and Report

Maintain records of who took which restricted holidays for audit and compliance purposes. This data also helps you understand workforce demographics and plan for future holiday lists. Your HRMS portal should be able to generate these reports with a single click.

If your team needs help setting up restricted holiday workflows in your HR software, our training and support team can walk you through the configuration step by step.

Smart Long Weekends with Restricted Holidays in 2026

One of the biggest benefits of restricted holidays is the ability to plan extended weekends. Here are some smart combinations for 2026:

Planning restricted holidays strategically lets employees maximize their time off without consuming too many casual or earned leave days. Use our CTC Calculator to understand how holiday pay affects your overall compensation structure.

Final Thoughts

Restricted holidays are a simple but powerful way to respect the cultural and religious diversity of India’s workforce. When managed well, they boost employee satisfaction, reduce leave-related disputes, and demonstrate that your organization values inclusion.

For HR teams, the key is having a clear policy, communicating it early, and using the right tools to automate the process. Manual tracking does not scale, and errors in holiday management directly affect payroll accuracy and employee trust.

Whether you are a government office following the DoPT list or a private company designing your own flexible holiday policy, getting restricted holidays right is a small investment that pays off in workforce satisfaction and compliance.

Frequently Asked Questions (FAQs)

What is a restricted holiday in simple terms?

A restricted holiday is an optional day off that employees can choose from a government-published list. Unlike gazetted holidays where all offices close, restricted holidays are available at the employee’s discretion with prior approval from their employer.

How many restricted holidays are allowed per year?

Central government employees can take up to 2 restricted holidays per calendar year. State government and private sector allowances vary, typically ranging from 2 to 4 per year depending on the employer’s policy.

Are restricted holidays paid or unpaid?

For government employees, restricted holidays are fully paid with no deduction from any leave balance. In the private sector, pay status depends on company policy. Some companies pay in full, some deduct from leave balances, and a few treat them as unpaid.

Can my employer refuse a restricted holiday request?

In government, a restricted holiday request can only be denied if the employee’s presence is essential for urgent work, and the denial must be documented. In the private sector, approval depends on company policy and operational requirements. Unreasonable refusals can damage employee trust.

What is the difference between a restricted holiday and a floater holiday?

There is no practical difference. “Floater holiday” and “optional holiday” are common terms used in the private sector for the same concept as a restricted holiday. All three refer to days an employee can choose to take off based on personal preference from a pre-approved list.

Can restricted holidays be carried forward to the next year?

No. Restricted holidays expire at the end of the calendar year. They cannot be carried forward, accumulated, or encashed. Employees must use their allotted restricted holidays within the same year or they lapse.

Do contract employees get restricted holidays?

Contract employees may or may not be eligible for restricted holidays depending on the terms of their contract and the employer’s policy. In government, most contract workers are not entitled to restricted holidays. In the private sector, it varies by company.

Can I take a half-day restricted holiday?

No. Restricted holidays must be taken as full days. Half-day restricted holidays are not allowed under central government rules, and most private companies follow the same practice.

How do restricted holidays differ across Indian states?

Each state government publishes its own restricted holiday list reflecting local festivals and cultural events. For example, Telangana includes Bathukamma and Bonalu, while West Bengal includes Durga Puja festivities. Employees should refer to their state government’s official notification for the most accurate list.

How can HR software help manage restricted holidays?

A dedicated leave management system automates restricted holiday tracking by maintaining separate leave balances, enforcing policy rules, supporting location-based holiday calendars, sending reminders, and generating compliance reports. This eliminates manual spreadsheets and reduces errors, especially for companies with employees in multiple states.