Maternity Leave Payments: What Should Employers Cover Beyond Basic Salary?

Dear all,

Please suggest how a company pays for maternity leave. Do we have to pay PF and ESIC as well? Do we pay HR & Conveyance or just basic salary?

Hi,

You need to pay wages in full, which will include your House Rent Allowance (HRA) and conveyance if they are part of the gross salary. Additionally, statutory deductions are also applicable for the associate.

Dear Good Shepherd,

ESI-covered employees receive maternity benefits from ESI. Only those who are excluded from ESI come under the purview of the Maternity Benefit Act, 1961. Why do you want to deduct ESI contributions for non-ESI employees? Please frame your question with the proper application of mind.