Maternity Pay for Employees Earning Over Rs.21,000: How Are They Compensated?

Employees earning less than Rs.21,000 as gross earnings are covered under the ESI Act and are eligible for maternity wages from the ESI.

In the case of an employee whose salary exceeds Rs.21,000 and is not covered under ESI, how will they be compensated during maternity?

Hi,

For non-ESI category employees, the employer has to provide Maternity Benefit - 182 days of leave with salary. Maternity Benefit is mandatory, provided the employee is eligible for Maternity Benefit as stipulated by the Act.

Group Insurance Policy for Hospitalization Expenses

If her employer has a group insurance policy, then her hospitalization expenses can be covered by your employer. Even a male employee can claim it for his wife's hospitalization expenses. You can only claim maternity insurance if you've been in the group insurance scheme for at least nine months. This again depends on HR policy. Most group insurances cover hospital charges up to a fixed amount and pre- and post-delivery hospital stay for up to 60 days. Some insurance companies also cover the pre- and post-delivery charges. They don’t cover routine monthly check-ups and medical termination within 12 weeks of pregnancy. You can claim these expenses along with your other medical bills.

Family Insurance Options

If you are not covered by group insurance, you can avail of a family insurance provided by many insurance companies. However, most of these insurance schemes require that you are with them for at least 24 months before the pregnancy and have paid three premiums.

Hi,

Even if the employer covers hospitalization expenses under Mediclaim for the employee, maternity benefit of 182 days leave with salary is a must as per the Maternity Benefit Act.