How Does the New ESIC Maternity Benefit Increase Impact Working Mothers?

ESIC - Notification Issued for the Increase in Maternity Benefit from 12 Weeks to 26 Weeks

Effective from 20th January 2017, by virtue of an amendment in the ESI Rules, an insured woman shall be entitled to 26 weeks of maternity leave.

An insured woman having two or more surviving children shall be entitled to receive maternity benefits during a period of twelve weeks, of which not more than 6 weeks shall precede the expected date of confinement.

Clause 6A of Rule 2 of the ESI Central Rules

The following clause has been added:

‘(6A) “insured woman” means a woman who is or was an employee in respect of whom contributions are or were payable under the Act and who is, by reason thereof, entitled to any of the benefits provided under the Act and shall include:

(i) a commissioning mother who, as a biological mother, wishes to have a child and prefers to get an embryo implanted in another woman;

(ii) a woman who legally adopts a child of up to three months of age.’

Please clear my doubt: if women are not insured in the ESIC Act, will the company pay her full gross salary or only her basic salary? Thank you.

Dear Sonuji,

Women employees not covered under ESI come under the purview of the Maternity Benefit Act, 1961. They are entitled to 26 weeks of leave with pay. The last drawn gross salary has to be paid.