Maternity Leave Dilemma: Does a Salary Increase Affect Benefits Eligibility?

Dear Seniors,

I have a query about Maternity Benefit, i.e., a woman employee is under maternity leave from December 2019 to May 2020 (her Gross Salary is Rs. 20,985). If she gets some increments w.e.f. April 2020, and her gross salary will exceed Rs. 21,000, will she still be eligible to receive maternity benefits (salary amount) for April and May 2020? Kindly advise.

Dear Sunny,

Salary is not a criterion of eligibility for maternity benefit under the Maternity Benefit Act, 1961. Regarding annual increments falling in the middle of maternity leave, the monetary effect will take place only from the date of rejoining.

Relevance of Rs 20,980 or Rs 21,000

Is it that the employee is under ESI and is undergoing ESI leave, and your doubt is what happens if her salary exceeds Rs 21,000 and becomes out of ESI coverage from April 2020? If yes, I would say that ESI benefits do not cease just because the salary exceeds Rs 21,000. Even after an employee is out of the ESI scheme, he/she will continue to receive the benefits of the scheme until the benefit period ends. Normally, the benefits from ESIC will be available for another six months. Therefore, an employee on maternity leave under ESI will continue to receive the same benefits for April and May even if she is out of ESI coverage in April.