Labour Law & Hr Consultant
Bharat Gera
Principal Hr Consultant
Management Consultancy
Human Resources
+1 Other

Thread Started by #Mokshith

Currently we are processing variable pay for all the employees for the year 2017. My confusion is, one employee who had availed maternity benefit for 6 months will also be considered for 12 months variable pay or only for 6 months. pls help me .
30th January 2018 From India, Bengaluru
Dear Mokshith,
Pl go through sec.5(1) of the MB Act,1961 relating to payment of maternity benefit during the woman employee's actual absence on account of maternity and the method of its calculation.
If you analyse the sub section (1) of Sec.5 together with the explanation given thereof, you will understand exactly (1) what the maternity benefit prescribed is and (2) how it is to be calculated.
(1) It is the payment for the entire period of absence on account of maternity subject to a maximum of 26 weeks.
(2) It should be calculated at the rate of average daily wages payable to her for the days on which she has worked during the period of 3 calendar months immediately preceding the date of her such absence. Therefore, it implies that not merely the actual paid to her during the 3 months alone to be taken, but payable should also be taken into account for quantifying the benefit. In other words, if the rate of wages due for the preceding 3 months were revised subsequently with retrospective effect the calculation of maternity benefit should cover such revision also.
(3) Now, coming to your question which is whether the employer has to pay the benefit of prospective revision during the period of absence. In my opinion it is not necessary for the calculation is based on the earnings of the preceding 3 months only. From the day she rejoins duty after the maternity leave, her salary should be restored to the revised scale with prospective effect only.
30th January 2018 From India, Salem
While calculating variable pay for 2017 you need to pay only for the period the employee has worked, maternity leave does not entitle a woman employee for further benefit like variable pay on it.
31st January 2018 From India, Mumbai
Employee on your roll are eligible for 'Variable Pay' . If the reason of absence have got sanctitity under law.
31st January 2018 From India, Mumbai
Dear Friend,
Because of maternity leave a female employee does not get disentitled for any benefit given by the company to its employees. If variable pay is expressly linked with performance and deliverables then in that case she will be entitled for the period she has worked.
Warm Regards
Bharat Gera
HR Consultant
1st February 2018 From India, Thane
In case the variable pay is paid based on Performance then she is not eligible and in case it is fixed and part and parcel of various reasons named as variable pay then you are required to pay that amount also even though she is on maternity leave.
28th April 2018 From India, Hyderabad
Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™