Understanding Employer Obligations for Maternity Benefits: When and How to Pay?

Dear Akhilesh Chandra Sharma, I have a few queries related to the Maternity Benefit Act.

Employer's Liability for Maternity Benefit Payment

1. When is an employer liable to pay the amount of Maternity Benefit? Is it pre-delivery, post-delivery, or at the time of joining the office after availing the Maternity Leave?

Leave Duration and Salary Payment

2. If an employee takes one week of leave before delivery and then wants to take 11 weeks of leave after delivering the child, is the employer liable to pay the salary for the whole period?

Advance Salary Payment and Non-returning Employee

3. If we pay all the salary in advance and the employee does not join the company after taking all the leaves, what action can be taken by the employer?

I hope to receive answers to my questions according to the law.

Regards, Akhilesh Chandra Sharma

Dear,

Below is a point-wise reply to your queries regarding the benefit of salary:

1. Salary is to be paid as usual during the entire period. It has nothing to do with "Pre-delivery, Post-delivery, or at the time of joining the office after availing the Maternity Leave."

2. Yes.

3. An employee is at liberty, after availing of the Maternity benefit, to continue in employment with your company or not.

Merely giving Maternity Benefit, which is her legal right, DOES NOT ENTITLE YOUR COMPANY TO BIND A FEMALE EMPLOYEE in any manner. Also, I would like to request you that, as an HR person, you should learn and PRACTICE the USE OF PROPER TERMINOLOGIES AND LANGUAGE. Instead of using the phrase "she wants to take 11 week leaves after producing the child...", kindly use the phrase "DELIVERING THE CHILD." Your query and language reflect the attitude of your organization as well as yours.

Regards.

Please see the attachment for the Maternity Act.

As per my best knowledge, 50% of "wages" should be paid as soon as a female employee proceeds to maternity leave (with all necessary testimonials). The remaining 50% should be paid after she rejoins the organization (with all necessary testimonials).

Thank you.

Thanks, Raj... and Akhi, please follow this.

Under ESIC

Akhi, under ESIC: A female employee has to get Form 20 (notification for the Employer) and then, after delivery, Form 23 for 84 days of maternity leave from the date of delivery. ESIC will pay for maternity leave. In addition to the above, ESIC has declared a ₹2500 bonus to the mother of the child recently.

Out of ESIC

Wages are to be paid as usual, and if the company has a special benefit, it should be given after her joining duty on submission of proper documentation along with an application.

Regards,
VP

Dear Prashant,

Please let me know whether we have to deposit PF contribution on 50% of wages paid in advance in the month wages paid in advance, or if PF contribution shall be paid as usual on monthly wages.

Thanks,
Subrata

Dear Subrata,

This thread relates to the Maternity Benefit Act, 1961, so please put your query on a separate thread.

With Regards,

R.N.Khola

Hi Raj, Thank you so much for your reply and advice. I have another question related to the payment of Maternity Benefit: If we pay the salary as usual, will we deduct P.F. and Professional Tax or not? Because the salary as usual payment attracts other benefits/social securities.

Regards,
Akhilesh

As per Mr. Prashant, 50% of the Maternity Benefit should be paid in advance as soon as the female employee proceeds on maternity leave, with the remaining 50% to be paid after she rejoins the organization. I would like to understand the PF implications related to such payments for Maternity Benefit.

Thanks,
Subrata

Understanding the Maternity Benefit Act

Please go through the Maternity Benefit Act. PF is not attracted towards the benefit received by the female employee for the leave period.

"Wages" means all remuneration paid or payable in cash to a woman if the terms of the contract of employment, express or implied, were fulfilled and includes:
- Such cash allowances (including dearness allowance and house rent allowance) as a woman is for the time being entitled to,
- Incentive bonus, and
- The money value of the concessional supply of food grains and other articles, but does not include:
- Any bonus other than incentive bonus;
- Overtime earnings and any deduction or payment made on account of fines;
- Any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the woman under any law for the time being in force; and
- Any gratuity payable on the termination of service.

According to the Maternity Benefit Act, 1961, the amount of maternity benefit for the period preceding the date of her expected delivery shall be paid in advance by the employer to the woman on the production of such proof as may be prescribed that the woman is pregnant. The amount due for the subsequent period shall be paid by the employer to the woman within 48 hours of the production of such proof as may be prescribed that the woman has delivered a child.

As a matter of deduction related to the EPF Act, please get the answer from our members who are experts in ESI/PF matters. While working with Skylark Associates, I do not handle such matters, and I do not want to attempt to answer your query with my general knowledge.

With Regards,
R.N.Khola