Dear Mokshith, please go through Sec. 5(1) of the MB Act, 1961, relating to the payment of maternity benefit during the woman employee's actual absence on account of maternity and the method of its calculation. If you analyze subsection (1) of Sec. 5 together with the explanation given thereof, you will understand exactly (1) what the maternity benefit prescribed is and (2) how it is to be calculated.
Maternity Benefit Calculation
(1) It is the payment for the entire period of absence on account of maternity, subject to a maximum of 26 weeks.
(2) It should be calculated at the rate of the average daily wages payable to her for the days on which she has worked during the period of 3 calendar months immediately preceding the date of her such absence. Therefore, it implies that not merely the actual amount paid to her during the 3 months alone should be taken, but the amount payable should also be taken into account for quantifying the benefit. In other words, if the rate of wages due for the preceding 3 months was revised subsequently with retrospective effect, the calculation of maternity benefit should cover such revision as well.
Prospective Revision During Absence
(3) Now, coming to your question, which is whether the employer has to pay the benefit of prospective revision during the period of absence. In my opinion, it is not necessary, for the calculation is based on the earnings of the preceding 3 months only. From the day she rejoins duty after the maternity leave, her salary should be restored to the revised scale with prospective effect only.