Understanding Maternity Benefits: How to Calculate Under ESIC and Why It's Separate from the Maternity Benefit Act

Can anyone tell me how to calculate the maternity benefit amount under the ESIC Act? Also, kindly explain why maternity benefits are provided under the ESIC Act despite having a separate act for maternity, namely the Maternity Benefit Act. Please help me.

Regards,
Paras Thakur

Maternity Benefit Under ESIC Act

Maternity Benefit is payable to an Insured Woman in the following cases, subject to contributory conditions:

Confinement
- Payable for a period of 12 weeks (84 days) on production of Form 21 and 23.

Miscarriage or Medical Termination of Pregnancy (MTP)
- Payable for 6 weeks (42 days) from the day following the miscarriage, based on Form 20 and 23.

Sickness Arising Out of Pregnancy, Confinement, or Premature Birth
- Payable for a period not exceeding one month, based on Forms 8, 10, and 9.

In the event of the death of the Insured Woman during confinement, leaving behind a child, Maternity Benefit is payable to her nominee on production of Form 24 (B).

The maternity benefit rate is 100% of average daily wages.

I have enclosed the benefits and rules of maternity under ESI for your reference.

Regards,
Madhan

Thank you very much for your kind reply. However, I still have the following doubts:

Maternity Benefit Coverage

1. Maternity benefit is covered under ESIC, so why is there a separate act for maternity, that is the Maternity Benefit Act?

2. As we know, the Maternity Benefit Act of 1961 does not apply to those factories where the ESIC Act applies. Therefore, if a woman's salary is above 15,000 and she is not eligible for ESIC contributions, will she still be eligible for maternity benefit during her confinement? Please clarify my doubt.

Thank you.

As you mentioned, for those whose gross income is less than $15,000, ESI will cover the maternity benefits. For those earning more than $15,000, the company needs to compensate for the 84 days.

Regards,
Madhan

Coverage Under the ESI Act and Maternity Benefit Act

1) The ESI Act covers women employees drawing wages of Rs. 15,000/- or less. Therefore, those whose wages are above Rs. 15,000/- per month can be covered under the Maternity Benefit Act 1961.

2) The ESI Act is applicable to establishments (other than factories) employing 20 employees (unless reduced to ten by notifications by State Governments), whereas the Maternity Benefit Act is also applicable to establishments employing ten or more persons. Thus, the Maternity Benefit Act covers those establishments that are not covered by the ESI Act.

Regards,
B. Saikumar
Mumbai

Coverage of Women Under the ESI Act

All women may not be covered under the ESI Act, either because their salary is above Rs 15,000 per month, or the establishment they are working in may be exempted, or the place may not be in an implemented area. In such cases, the Maternity Benefit (MB) will apply.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]

Let me answer it in a different way. The Maternity Benefit Act makes it obligatory on the part of the employer to provide maternity benefits such as leave with salary, medical bonus, etc. At the same time, concerning employers covered by the ESI Act, the responsibility of paying maternity benefits to women employees under the ESI Scheme is assumed by the Employees State Insurance Corporation. This implies that it is a form of insurance in which the employer makes contributions to the ESI Corporation at regular intervals, i.e., monthly.

In the case of individuals not eligible for coverage under the ESI Scheme, the employer alone is responsible for granting benefits. There are certain conditions for providing benefits, including salary thresholds for coverage (employees earning more than Rs 15,000 are not covered under ESI) and contributory conditions. Consequently, the employer bears the responsibility for providing maternity benefits to a woman employee covered by ESI who has not contributed for at least 70 days in the two contribution periods preceding the delivery date.

The same contributory conditions apply in cases of miscarriage. Thus, the employer must provide benefits even if the employee is covered by ESI and has contributed their share at the prescribed rate of 4.75%. It is important to note that while the employer is not obligated to provide maternity benefits to an employee who has not worked for at least 80 days in the twelve months before delivery, they are liable to grant six weeks of leave with wages in cases of miscarriage, with no requirement for the 80-day qualifying service.

The contributory condition in ESI also applies in cases of miscarriage, thereby placing the responsibility on the employer. In summary, providing maternity benefits is the employer's responsibility. If the employer is covered by the ESI Act (requiring a minimum of 10 employees for coverage), then for those employees covered and who have contributed for at least 70 days, the liability is shifted to the ESI Corporation.

Regards,
Madhu.T.K

What is the amount of the medical bonus under ESI as well as the maternity benefit?