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What is Leave Type?

Leave Type
Leave Types in ERPNext define the categories of leave (Annual, Sick, Maternity, Casual) with rules for accrual, carry-forward, encashment, and maximum allowed days.

Configuring Leave Types

Go to HR → Leave Type → New. Set the name, maximum allowed days, whether it is paid, if carry-forward is enabled (and the maximum carry-forward days), and if leave encashment is allowed. Tick "Allow Negative Balance" for emergency leave policies.

Statutory Leave Types for India

Indian businesses typically configure Earned Leave (EL), Sick Leave (SL), Casual Leave (CL), Privilege Leave (PL), Maternity Leave, Paternity Leave, and Compensatory Off. ERPNext calculates accruals automatically based on the leave policy.

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