Understanding Maternity Benefits: What Does "Average Pay" Mean for Salaries Over 10,000?

Dear All,

I have a question on the Maternity Benefit Act of 1961. If a woman is receiving a salary within 10,000, she will be under ESI coverage. Consequently, many companies may not provide benefits under the Maternity Benefit Act, and instead, she will receive benefits under ESI (please correct me if I am mistaken).

If a woman's salary is 50,000, she will not be covered under ESI but will fall under the Maternity Benefit Act of 1961. Section 5.5 of the act states that if a woman working in the organization becomes pregnant, she is entitled to leave with average pay for six weeks before and after delivery.

This implies that the pay she is currently receiving should be given, or is there a specific measurement if the limit of 10,000 is exceeded? What exactly does "average pay" mean as stated in the act?

Please provide clarification and share your valuable insights.

Thanks and regards,
Diwakkar P
09600044113

Dear Diwakkar,

You have rightly understood the law. There is no other measurement in the law. She will get maternity benefit of Rs. 50,000 per month if she has been paid this rate for all three calendar months from the date of going on leave or absents herself on account of maternity. You can also refer to section 5 Explanation for a better understanding of the calculation of average daily pay under the MB Act, 1961.

Opinion/comments submitted as requested

With Regards,
R.N.Khola