Understanding Maternity Payment: What Should HR Include in the Salary Package?

vemula_mba2007@yahoo.com
Dear all,

This is Rahul Vemula working as an HR in a manufacturing unit. I have a doubt about payment under the Maternity Act. Can anyone help me regarding maternity payment?

1) How much should we pay for them? (e.g., full salary including telephone allowance, washing allowance, traveling allowance, etc.)
nathrao
Maternity Benefits Act: Payment Details

Refer to the Maternity Benefits Act. Section 5, given below, indicates what is to be paid to the female employee.

Right to Payment of Maternity Benefit

(1) Subject to the provisions of this Act, every woman shall be entitled to, and her employer shall be liable for, the payment of maternity benefit at the rate of the average daily wage for the period of her actual absence immediately preceding and including the day of her delivery and for the six weeks immediately following that day.

Definition of Wages

Wages are defined in Section 3(n) of the Act:

(n) "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:

(1) such cash allowances (including dearness allowance and house rent allowance) as a woman is for the time being entitled to;
(2) incentive bonus; and
(3) the money value of the concessional supply of foodgrains and other articles,

but does not include:

(i) any bonus other than incentive bonus;
(ii) overtime earnings and any deduction or payment made on account of fines;
(iii) 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
(iv) any gratuity payable on the termination of service.

(o) "woman" means a woman employed, whether directly or through any agency, for wages in any establishment.

I hope this clears your doubts.
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