Understanding Maternity Benefit Pay: How Much Should Employers Provide and How Is It Calculated?

Hi, please guide me on what the maternity benefit amount is that an employer needs to pay to their employee and how to calculate the maternity amount.

Please indicate whether your unit/establishment is covered under the ESI Act, 1948. If not, does your question pertain to the payment of maternity benefits under the provisions of the Maternity Benefit Act, 1961?

Thank you.

In our company, all the employees have exceeded the prescribed limit for ESI. Therefore, none of our employees are covered under ESI. I require details on the eligible amount under the Maternity Benefit Act 1961 and its calculation. Please take the necessary actions.

Thank you.

Understanding Maternity Benefits Under the Maternity Benefit Act, 1961

Under the Maternity Benefit Act, 1961, there is a condition of a minimum number of days of service (eighty days in the twelve months immediately preceding the date of her expected delivery - Section 5). Further, to ascertain the amount of maternity benefit payable, please see Section 5(1) of the said Act. The terms "maternity benefit" and "wages" have been defined under Section 3(h) and 3(n) of the said Act.

In addition, you are also required to consult the rules framed under the above Act by the appropriate government. If your establishment is located in Punjab (and if the appropriate government in your case is the Punjab Government), then you are also required to comply with the Maternity Benefit Rules as framed and made applicable by the said Government. The rules may describe the procedure regarding the payment of the said maternity benefit and the records to be maintained to show compliance with the same.

In my opinion, after calculating the wages and average wages, you can calculate the maternity benefit amount to be paid in the matter accordingly.

Regards

I am working in a private company for one and a half years. We have just 20 employees. I want to know about maternity benefits, specifically if I am eligible for full salary during maternity leave. My boss informed me that as per our company policy, I will receive my salary, but the policy does not mention anything about wages. I am aware that a previous employee received only half of her salary in 2010 during her maternity leave. I am now five months pregnant and cannot pursue a new job.

Legal Recourse for Maternity Benefits

Is there any legal recourse I can take to claim full salary? Can you guide me on this matter?

Kindly advise.

Understanding Maternity Benefits

Please refer to Section 5 of the Maternity Benefit Act, 1961, which lays down the rate on the basis of which the maternity benefit is to be paid to eligible women employees. The term "wages" has been defined under Section 3(n) of the said Act. Please also ascertain whether the Employees' State Insurance (ESI) Act is applicable in your establishment or not.

Compliance with Statutory Provisions

Further, the statutory provisions must be complied with. There is no discretion for any employer to pay the benefits to their employees at rates lower than those mentioned in the Act. If an employer pays maternity benefits at a lower rate, it may be done at their own risk and responsibility. The aggrieved employee can naturally address the matter with the authorities as specified in the Act mentioned above.

Accessing the Maternity Benefit Act

You can download the above Act from the website of the Ministry of Labour & Employment and the rules from the website of the state government where your establishment is located. You can also calculate the "maternity benefit" that will be admissible to you.