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Karnataka National and Festival Holidays 2026: Employer Compliance Guide

Karnataka national and festival holidays

Introduction

Many companies wait until the last minute to plan their holiday calendar. This often creates confusion among employees and payroll teams. Some organisations even face legal trouble when they fail to follow Karnataka’s rules on paid holidays. The problem becomes bigger every year as audits get stricter and employees become more aware of their rights.

If you are an employer or HR manager, understanding Karnataka national and festival holidays for 2026 is not just helpful but a legal requirement. The moment the official holiday list is released, organisations must update their internal policies, attendance systems, payroll rules, and shift schedules. Doing this correctly protects your company from fines and employee disputes.

Let us break everything down in a simple and practical way.

What Are National and Festival Holidays in Karnataka

In Karnataka, employers must provide two types of mandatory paid holidays:

National Holidays

These are fixed holidays observed across the country. Every company must grant these holidays to all employees without exception.

Festival Holidays

These are also compulsory but vary based on government notifications and the type of establishment. Employers must select the applicable festival holidays and communicate them to employees.
Employers must follow the Karnataka Industrial Establishments Act and finalise their calendar after the list of government holidays for 2026 in Karnataka is released. Proper planning ensures employees receive all legally protected Karnataka national and festival holidays.

Why These Holidays Matter for Employers

Karnataka national and festival holidays are not just yearly reminders on the calendar. They directly affect compliance, payroll accuracy, and the overall work environment, which means employers must treat them seriously.
  • Karnataka national and festival holidays are mandatory under state law and must be followed exactly as notified.
  • Proper planning prevents payroll errors in overtime, double wages, and compensatory off calculations.
  • A confirmed holiday calendar helps teams manage shift planning and project schedules.
  • Early communication reduces employee confusion and prevents avoidable grievances.
  • A transparent holiday list builds trust and supports a positive workplace culture.
A clear understanding of these points helps employers manage holidays without disruptions or compliance risks.
Karnataka national and festival holidays

Karnataka National And Festival Holidays

Aspect What the Law Says Takeaways for Employers
National & State Holidays Five fixed holidays: 26th Jan, 1st May, 15th Aug, 2nd Oct, and 1st Nov Must grant to all employees without exception
Festival Holidays Five holidays chosen from the official Schedule Select in consultation with employees or trade union
Polling Day Holiday Paid holiday for registered voters on general election days Ensure eligible employees get this holiday
Holiday Pay Rules All holidays are paid; work on a holiday = double wages or substitute paid holiday; daily/piece-rate workers paid based on average earnings Update payroll and communicate rules clearly
Holiday List Submission & Display Annual holiday statement submitted to Labour Inspector; displayed in workplace Helps employees know entitlements and ensures compliance
Penalties for Non-Compliance Inspectors monitor; failure can lead to fines or legal action Maintain proper records and follow statutory requirements

Why it matters:

Following these laws keeps holiday policies fair, avoids disputes, and ensures the organisation stays compliant with Karnataka labour regulations.

And, if any declared holiday falls on a non-working day (Saturday or Sunday), like 15 August 2026, employers must give an alternate holiday from the gazette list. If employees are required to work on such holidays, they must receive compensatory off or overtime wages at twice the normal rate.

How to Make Your 2026 Holiday Compliance Plan

Step 1: Prepare the Annual Holiday Calendar

Start by reviewing the official holiday notification once it is released. Mark all Karnataka national and festival holidays and decide which festival holidays apply to your establishment. Add them to your draft holiday calendar and share it with management for approval.

Step 2: Select Festival and Optional Holidays

Choose the festival holidays based on the cultural makeup of your workforce. If needed, offer a few optional holidays so employees can use them for festivals of their choice. These optional holidays should be credited at the start of the year.

Step 3: Finalise and Get Approval From the Labour Department

Discuss the draft holiday list with employees to ensure everyone agrees. Once finalised, submit it to the Labour Department. The concerned Labour Officer must sign or approve it to complete compliance.

Step 4: Issue a Formal Notice to Employees

Once finalised, publish the holiday list on the office noticeboard and share it by email. This ensures every employee knows the confirmed Karnataka national and festival holidays for the year.

Step 5: Update Payroll and Attendance Policies

Holiday rules affect overtime, leave deductions, and daily wages. Update your payroll system so it correctly calculates holiday pay and compensatory off. Clarify the rules with employees to avoid confusion later.

Step 6: Set Rules for Working on Mandatory Holidays

Some industries need staff on national or festival holidays. If an employee works on any of the notified Karnataka national and festival holidays, you must pay double wages or give a compensatory holiday. Consent must also be taken in advance.

Step 7: Maintain Proper Registers and Records

Compliance records must be kept ready for inspections. These include the holiday notice, attendance logs, wage registers, and compensatory off details. Proper documentation protects your company during audits or disputes.
Note: Leaves and holidays are not the same. Holidays are fixed days declared by the government, while leaves come from an employee’s earned or allotted leave balance. Holidays do not reduce leave balances, but taking time off on a working day does.
Karnataka national and festival holidays
Not sure how to finalise your calendar?

Sample List of Government Holidays 2026 Karnataka

Employees in Karnataka are entitled to approximately 11 statutory holidays in 2026 under the Karnataka Industrial Establishments (National and Festival Holidays) Act, 1963. You can check the complete list of government holidays 2026, which includes both national and festival holidays, to plan leaves and work schedules accordingly.

National Holidays (4):

  • 26 January – Republic Day
  • 1 May- Labour Day
  • 15 August – Independence Day
  • 2 October – Gandhi Jayanti

State Holiday (1):

  • 1 November- Karnataka Rajyotsava

Festival Holidays (5):

  • Makara Sankrantri – Local/New Year festival
  • Diwali (Deepavali) – Festival of Lights
  • Ugadi – Kannada New Year
  • Holi – Festival of Colors
  • Eid – Religious festival (date may vary based on lunar calendar)
  • Christmas – 25 December
  • Dussehra (Vijayadashami) – Celebrates victory of good over evil
  • Optional / Local Festival Holiday – Some establishments may include an additional festival based on workforce composition or official notification

Key Points for Employers :

  • The final dates will be confirmed only after the government releases the official notification.
  • Employers should update HR calendars, payroll systems, and shift schedules according to this list.
  • Sharing the confirmed holiday list with employees early reduces confusion and ensures compliance with statutory requirements.

Common Mistakes Employers Should Avoid

Many organisations face penalties because of simple oversights. Some common mistakes include:
  • Not declaring the holiday list for the year on time
  • Failing to grant compensatory off when employees work on holidays
  • Not updating HR policies to match the official Karnataka national and festival holidays
  • Incorrect wage calculations for holiday work
  • Confusing mandatory holidays with optional festival holidays
  • Not displaying the notice publicly in the workplace
Avoiding these mistakes will help your company stay compliant and maintain a positive workplace culture.
Need help fixing HR gaps?

Case Study

Context:

Workers at a large textile company were given 17 festival holidays every year as part of long-standing practice. However, the employer stopped paying daily-rated and piece-rated employees for these holidays, causing financial loss and unequal treatment.

The Issue:

The dispute arose because:
  • Festival holidays were treated as unpaid for certain workers
  • Established company practice was ignored
  • Some employees received paid holidays while others did not
  • No clear communication or policy change was issued

Legal Outcome:

The workers approached the Labour Court, which ruled in their favour. The employer appealed, but the Supreme Court confirmed that:
  • Festival holidays must be paid when they form part of established practice
  • All categories of workers are entitled to holiday wages
  • The employer must compensate employees for unpaid holiday wages

Key Takeaways:

Employers must maintain consistent holiday policies and honour established practices. Unequal treatment or sudden changes without communication can lead to legal action, financial liability, and reputational risk. Clear rules and proper documentation help prevent disputes.

How Vishaal Consultancy Services Can Help You

Managing Karnataka national and festival holidays may look simple on the surface. But every year, companies face penalties because of mistakes in payroll, attendance, or documentation. Vishaal Consultancy Services helps organisations stay fully compliant by guiding them through every step.

Our team supports you with:

  • Drafting your 2026 holiday calendar
  • Updating HR manuals and payroll policies
  • Setting up compensatory off rules
  • Preparing mandatory registers and records
  • Conducting compliance checks before audits
  • Training managers on legal requirements
With expert guidance, you can avoid penalties and maintain smooth operations throughout the year.
Click here to get the list of general holidays sanctioned by the Government of Karnataka: list of government holidays 2026
Looking to avoid compliance penalties?

Conclusion

Planning for Karnataka national and festival holidays is not just a routine HR task. It is an important part of legal compliance for every employer in Karnataka. When you prepare early, communicate clearly, and follow the official rules, you create a workplace that is fair, transparent, and legally sound.

If you need help drafting your 2026 holiday plan or updating your compliance documents, Vishaal Consultancy Services is ready to support you. Proper planning today protects your organisation from risks in the future.

FAQs

Yes, in certain business situations, employees may be required to work. Employers must obtain consent in advance and provide either double wages or a compensatory day off, which helps employees feel respected while keeping the company compliant.

All eligible employees, including contract, part-time, and gig workers, are entitled to mandatory national and festival holidays. Applying policies fairly ensures every employee feels valued and avoids any sense of unequal treatment.

When the government updates the holiday list, employers should promptly revise the internal calendar, notify employees, and adjust payroll or shifts. Acting quickly shows employees that their time and entitlements are taken seriously.

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