A mandatory paid public holiday in India officially declared by the Central or State Government through the Official Gazette, during which government offices, banks, and most private sector organizations remain closed.
Key Takeaways
When the Indian government publishes a holiday in the Official Gazette, it becomes a gazetted holiday. Think of the Gazette as the government's official bulletin board. Once a holiday appears there, it carries legal weight. Government employees get the day off with full pay. Banks close. Courts don't sit. For Central Government employees, the DoPT releases an annual holiday list covering gazetted holidays and restricted holidays. State governments issue their own lists, which can differ significantly. Kerala might declare Onam as a gazetted holiday while Gujarat observes Uttarayan. This state-level variation is what makes holiday management complicated for companies operating across multiple Indian states. Private sector obligations depend on the applicable Shops and Establishments Act. Most states mandate between 9 and 15 paid holidays per year, though the specific days may not always mirror the gazetted list. The practical reality is that most private employers follow the central or state gazetted holiday list for their location, adding or substituting a few based on company culture and workforce composition.
The Central Government's annual holiday list classifies holidays into distinct categories, each with different rules for who must observe them.
| Type | Number per Year | Who Must Observe | Examples |
|---|---|---|---|
| National Holidays | 3 | All government offices, all states, mandatory | Republic Day (Jan 26), Independence Day (Aug 15), Gandhi Jayanti (Oct 2) |
| Central Government Gazetted Holidays | 14-17 (varies yearly) | All Central Government offices and PSUs | Holi, Diwali, Eid-ul-Fitr, Christmas, Good Friday, Guru Nanak Jayanti, Buddha Purnima |
| State Gazetted Holidays | Varies by state (10-26) | State government offices, often followed by private sector | Onam (Kerala), Pongal (Tamil Nadu), Bihu (Assam), Chhath Puja (Bihar) |
| Bank Holidays | Varies by state (15-25) | Banks under Negotiable Instruments Act 1881 | Includes gazetted holidays plus additional regional bank closures |
The distinction between central and state holidays is critical for multi-location employers.
The DoPT circular (usually issued in November/December) lists gazetted holidays and restricted holidays for Central Government employees in the upcoming year. This list applies to all Central Government offices, ministries, departments, and public sector undertakings across India. Central Government employees get all gazetted holidays as paid days off. They also get 2 restricted holidays of their choice from the restricted holiday list. The central list aims for religious balance, including major festivals from Hinduism, Islam, Christianity, Sikhism, Buddhism, and Jainism.
Each of India's 28 states and 8 union territories publishes its own gazetted holiday list. These lists reflect local demographics, regional festivals, and state-specific commemorations. Tamil Nadu declares Pongal (a 4-day harvest festival) as gazetted holidays. Assam observes Bihu across multiple gazetted days. West Bengal has separate gazetted holidays for Durga Puja that other states don't observe. The total number varies widely. Some states declare as few as 10 gazetted holidays, while others go up to 26. Private employers in each state typically follow the state list for their operational location.
A company with offices in Mumbai, Bengaluru, Kolkata, and Chennai will face four different holiday calendars. HR teams have three common approaches: follow the local state list for each office (most common and legally safest), create a uniform national list by picking a core set of holidays and offering the rest as floating holidays (popular with IT companies), or follow the central government list for all locations (simple but may miss important regional festivals). Most large Indian employers go with the first or second approach. A uniform list risks alienating employees who lose important local observances. A fully localized list creates administrative complexity but demonstrates cultural respect.
Several laws interact to determine holiday obligations for different types of employers in India.
Section 25 declares that no bank or financial institution is required to transact business on a "public holiday" as defined by the Act. The Reserve Bank of India notifies the specific bank holidays for each state annually. This is why "bank holidays" and "gazetted holidays" overlap significantly but aren't identical. Banks may have additional closure days beyond the standard gazetted list.
Each state's Shops and Establishments Act mandates minimum holidays for private sector workers. The specifics vary: Maharashtra requires at least 1 paid holiday per 4 weeks of work plus national and festival holidays. Karnataka mandates a minimum of 1 day off per week plus national holidays. Delhi requires paid holidays on Republic Day, Independence Day, Gandhi Jayanti, and 4 festival holidays. These Acts are the primary legal basis for holiday entitlement in the private sector. Non-compliance can result in fines and, in some states, criminal penalties.
For manufacturing workers, the Factories Act requires paid holidays on national holidays (Republic Day, Independence Day, Gandhi Jayanti) and any other days declared by the state government. Workers required to work on a holiday must receive compensatory time off within a specified period and, in many states, double the ordinary rate of wages.
While private companies must meet statutory minimums, most go well beyond legal requirements.
Most IT companies in India offer 10 to 15 paid holidays per year, typically including all national holidays, major religious festivals (Diwali, Holi, Eid, Christmas), and 2 to 4 floating or restricted holidays. Companies like Infosys, TCS, and Wipro publish annual holiday calendars in December for the following year. The floating holiday model is especially popular because it lets employees choose observances that matter to them personally.
Manufacturing plants often follow the state's Factories Act requirements strictly. Retail operations may remain open on most gazetted holidays (especially during festive shopping seasons) and offer compensatory offs or premium pay instead. The labour codes currently being implemented across states aim to standardize many of these provisions, but full implementation timelines remain uncertain as of 2026.
Gazetted holidays affect payroll processing, overtime calculations, and attendance tracking in specific ways.
Data points that illustrate the scale and complexity of holiday management in India.
Practical guidance for HR teams, especially those managing employees across multiple states.