Navigating the New Maternity Benefit Act: Should Companies Pay Full Salary for 26 Weeks?

srinaren
Hi friends, now that the new Maternity Benefit Act has been passed, which mandates 26 weeks of maternity leave, it poses a challenge for organizations when it comes to employees covered under ESI. Providing 26 weeks of salary along with leave for staff earning higher salaries can potentially create financial strain for any organization.

In the absence of a staff member, a new hire must be brought in or additional responsibilities must be allocated to existing employees. In such scenarios, the question arises: should the staff member be paid their basic pay or the ESI eligibility pay for 6 months, or does the company need to provide the full salary with all perks and allowances?

Can someone shed light on this situation, please? I'm sure many of our friends are also eager to understand this better.

~ Srinaren
Srinath Sai Ram
Dear Mr. Srinaren,

Maternity Benefit means payment of the last drawn Gross Salary of a Woman Employee to the extent of 26 weeks. Please go through the Maternity Benefit Act, 1961 for further clarity.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute