Leave management software that keeps balances and payroll in step
Write your leave policy once. AiroHR credits leave on time, checks every request against your rules, sends it for approval, and passes paid and unpaid days to payroll.
Every leave rule your company follows
Casual, sick, earned, maternity or your own leave types, each with its own rules, for the people they apply to.
One policy per leave type
Set the days, the leave year (yearly, half-yearly or quarterly) and who it applies to: all staff, or chosen branches, departments, designations, people or gender.
Credit at the start or every month
Give the full quota at the start of the leave year, or credit it monthly or quarterly, so new joiners earn leave as they work.
Carry forward, lapse or encash
Decide what happens to unused days at year end: carry them forward, let them lapse, or keep them for encashment, with a cap on how many days.
Rules on every request
Allow or block half days, limit days in a row, stop requests too far in the past or future, ask for notice in advance and cap balances.
Approvals in one queue
Requests wait in a pending list for the manager or HR, and each one moves to approved or rejected with a record of the decision.
Leave encashment
Pay unused leave on your chosen salary parts at 1x, 2x or 3x, with the next payroll or separately. Encashment stays out of PF and ESI wages. Read the leave encashment guide or try the free leave encashment calculator.
Holiday calendar
Keep each year's holiday list in one place, so attendance and leave counts know which days are holidays.
Comp-off for extra days
Work on a weekly off or holiday is banked and can be claimed as a comp-off day, with its own validity and lapse or encash rule.
Linked to payroll
Approved paid leave counts as a paid day and unpaid leave reduces payable days in the payroll run, so payslips match the leave record.
Set up leave in four steps
Create your leave types
Add each leave with its days, leave year, accrual and year-end rule.
Add your holidays
Enter the year's holiday list for your company.
Staff apply on the app
Employees see their balance and apply from the employee app or portal.
Approve and pay
Managers approve or reject, and the result reaches attendance and payroll.
Leave the way Indian companies run it
- Earned leave credited month by month as staff work, instead of all at once.
- Gender-specific leave, such as maternity leave, offered only to the people it applies to.
- A new rule can start from a chosen date, so balances before that date are left as they were.
- Unused leave is worked out in the full and final settlement when someone leaves.
Clear balances, fewer questions
- Employees see their leave balance on the app's home screen and before they apply.
- HR sees every request waiting for approval in one place.
- Each leave type shows its rule in plain words while HR sets it up, such as "1 day every month, unused days lapse at new year".
- Encashed days come off the balance, and come back if the encashment is cancelled.
Leave Management questions, answered
Can leave be credited every month instead of at the start of the year?
Yes. Each leave type can be credited at the start of the leave year, every month or every quarter. For example, 1 day a month gives 12 days over a year.
What happens to unused leave at year end?
You choose per leave type: carry forward, lapse, or keep for encashment. You can also set a maximum number of days to carry or encash.
Can employees apply for half-day leave?
Yes, when you allow half days on that leave type. You can also limit consecutive days, block requests too far back or ahead, and ask for notice in advance.
How does leave affect salary?
Approved paid leave counts as a paid day. Unpaid leave reduces payable days, so the payroll run pays the right amount without manual changes.
Can we pay unused leave in cash?
Yes. Leave Encashment works out each person's amount from the salary parts you pick and a 1x, 2x or 3x multiple, and pays it with payroll or separately.
Can different branches have different leave rules?
Yes. Each leave policy can apply to chosen branches, departments, designations or people.
This page describes AiroHR as of November 2026.
Move your leave policy to AiroHR
Book a demo and send us your leave policy. We will show it set up in AiroHR.
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