In many companies, the salary of an employee is broken in many heads like
Basic Pay
Food Allowance
Special Allowance etc.
When a women employee gets pregnant, the law state the person is entitled to a 12 week paid leave at the rate of average daily wage received in the preceding 3 months.
So considering the law and the salary breakup as given above, what is the amount of money that needs to be legally paid to the person
Would the calculations be based on basic monthly pay, total pay or on minimum wages prescribed for the state?

From India, Delhi
The definition of wages is provided at section 2(n) of this Act.The payment of Maternity Benefit is to be provided to the woman employee as per section 5 of this M B Act, 1961.Explanation of this section 5 shows that we are to make the payment of maternity benefit by the average daily wages or by the minimum wages as fixed by the appropriate Govt. or ten rupees, whichever is higher.In this way according to this Explanation we are to give daily average wages if it is more than minimum wages & if wages are at par with minimum wages then we are to pay as per minimum wages & if no minimum wages are fixed for the employment where the concerned woman employee is working then we are to pay ten rupees as daily wages.
Opinion/ comments submitted as requested.
With Regards,

From India, Delhi
The language in the act is very confusing.
I am talking about an officer grade employee whose basic salary is around 15000 per month and take home salary is around 30000 per month (including heads liek hra/special allowance etc).
so would we calculate daily wage as 15000/30 or 30000/30 or at the rate of minimum wages as per the laws of the state?
Thanks for your help.

From India, Delhi
Dear In my opinion this is to be considered as Rs.30,000/pm for calculation of daily average wages as per section 2(n) of the MB Act, 1961.
From India, Delhi
I am well satisfied with Mr. Khola's comments... the salary for maternity benefits needs to be considered as gross pay which is being paid to her on regularly basis.
The Act also specifies about the same. Also in case of some cases like caesarian delivery, the Act specifies for additional one month paid leaves.

From India, New Delhi
In case my company refuses to pay me as per these laws, what can I do to fight this injustice? Who do i approach ?Who can we complain to?
From India, Delhi
Dear ALL, Can any one give me good suggegestion to calculate maternity benifit whether it is Gross/Basic?? please help out Regards Charvaka Reddy
From India, Hyderabad
Dear Charvaka,
Pl.refer to Sec 3 (n) of the Maternity Benifit Act 1961 which defines wages.
It will be clear that besides remuneration paid/payble it includes:DA and HRA,incentive Bonus,concessional supply of foodgrain and other articles.
But does not include Bonus other than incentive Bonus,OT earnings,contribution to Pension funds etc.
Trust this will help you decide on the entitlement.

From India, Delhi
Dear All
The salary / wages payment during the time of maternity leave period refers to the gross salary only. Only for the purpose of leave salary, loss of pay calculation, bonus etc. the term salary refers to Basic plus DA (exclude allowances).

From India, Chennai
Dear All,
The salary for the purpose of maternity benefits would mean the gross salary which an employee receives on regular basis such as basic+DA+HRA+any other allowance which is being paid on regular basis.
Obviously it would not include the bonus, incentives, OT etc since these components are not paid on regular basis and the quantum of the same is also not fixed.... this depends on various factors. This also does not include the retirals.
We need to see the intention/very purpuse of the law on this... the very purpose of this benefit is to regularise the payment of any woman who is going to deliver a child.
Incase the employer does not allow leaves and the benefits under the maternity benefits Act, the employee has a right to apeal for the same in the labour court or the civil court as applicable.
Naveen Jain

From India, New Delhi

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