Understanding Maternity Benefits: Does It Cover Full Salary or Just Basic + HRA?

Hello everyone,

I need your suggestions regarding the implementation of the Maternity Benefit Act. This is the first case in our company, so I am not that much aware of this.

I have read the Act. According to that, in the period of 12 weeks, i.e., 3 months, an employee is entitled to get basic wages, in our terms salary. But does it mean the whole salary including all allowances or just basic + HRA?

Waiting for your valuable suggestions...

Hi Shraddha,

You need to pay all remuneration entitled to a woman employee if the terms of the contract of employment, express or implied, were fulfilled. This should include DA, HRA, and incentives. Wages do not include overtime wages and employer's contributions to any PF or insurance fund.

Veerendra Kumbar :)

Hi Shraddha,

The below information will help you in understanding the Maternity Benefit Act in detail:

A female employee shall be entitled to maternity leave as per the Maternity Benefit Act 1961 or The Employee State Insurance Act 1948, as per the provisions of the Act applicable to her.

a) Subject to the provision of the Maternity Benefit Act, married female employees who have been in the continuous employment of the company for not less than 10 months prior to the date of commencement of Maternity Leave will be allowed maternity leave on full pay up to 12 weeks, approximately 6 weeks before delivery and 6 weeks after, provided that she undertakes not to do any work outside her own home during these 12 weeks and that the confinement is certified by an approved medical practitioner. (Shraddha, please remember that it is a legal compliance)

b) The applicant for maternity leave shall give notice to the company of her pending confinement not less than 8 weeks in advance supported by a medical certificate.

c) Maternity leave will be in addition to other leave facilities already in force.

d) No pay shall be due or payable in lieu of unavailed maternity leave.

e) No maternity leave shall be allowed under this Rule if and when the employee is covered under the E.S.I. Act. Female employees availing maternity leave will not be entitled to proportionate earned leave for the period of their maternity leave, i.e., 12 weeks.

f) Female employees desiring to extend their maternity leave due to some reason; this extended absence will be deducted from their balance paid vacations. If the concerned employee does not have leave balance, the leave will be treated as leave without pay.

Regards,

Sushma

Dear Sushma,

Your email is very informative, covering the critical compliance issues one has to bear in mind.

With regards,
AM

Dear Sushma,

Does the Maternity Benefit Act apply to a service industry as well? I would really appreciate if you could answer my query at the earliest.

Regards,
Simran