Navigating Maternity Benefits in Private Companies: What Are the Legal Requirements?

Maternity Benefits in Private Organizations

Can you help me with a query that my management has: Is it mandatory to provide maternity benefits in a private organization?

If there are no paid leaves given, but the company offers some benefits like group mediclaim covering maternity, will that suffice?

Can there be any legal implications from employees if the above is done?

Kindly let me know.

Thanks,

Barnali Sengupta

Dear Barnali,

Once the Maternity Benefit Act, 1961 becomes applicable to any establishment as defined under Section 2(1) of the Act, and the employee becomes eligible for maternity benefits as per Section 5(1) of the Act, it is mandatory to provide the benefits stipulated under the Act. Though the term "maternity benefit" has been defined under Section 3(h) of the Act with reference to the payments mentioned in Section 5(1), it is imperative for every employer to understand it in a holistic manner, which would require the provision of all other employment concessions mentioned therein.

Moreover, your group medical insurance, to the best of my understanding, would cover only hospitalization expenses incurred due to delivery, medical termination of pregnancy, or miscarriage, but not the payment of wages/salary for the period of absence.

There are other restrictions/benefits enumerated under Sections 4, 9, 9-A, 10, 11, and 12.

As far as I can understand, the group medical insurance facility extended by your management is just an additional benefit. It cannot empower your management to take away the statutory benefits under the Act.

Dear CiteHR member Ms. Barnali Sengupta,

Thanks to Mr. Umakanthan M. for commenting with reference to different sections of the MB Act 1961. However, a few points need to be added for which I respectfully seek his kind permission.

Observations for Ms. Barnali

My observations for Ms. Barnali would be that she, as a querist, should always attempt to give complete information, i.e., the company/factory/establishment in respect of which she has posted the question. It is imperative to know whether it is a factory covered by the ESI Act 1948. If yes, then the MB Act 1961 would not be applicable in terms of Section 2(2) of the MB Act.

Yes, the MB Act 1961 is mandatory if your establishment employs 10 or more workers at any time during a year. It is also mandatory to give paid leaves for 26 weeks under the MB Amendment Act 2017.

Group Mediclaim Policy

Group Mediclaim policy is not a substitute for the benefits under the MB Act because wages are payable during the prescribed period of 26 weeks. It would count as an additional benefit given by the company towards hospitalization expenses only.

Hope this supplements the comments of Mr. Umakanthan and also answers your query. For any other clarification, you are always welcome to post an individual query to me or on the forum.

You are also requested to validate the comments of contributing experts if you find them useful and adding to your knowledge.

With best wishes,

Chandra Mani Lal Srivastava
Master Consultant
[Phone Number Removed For Privacy-Reasons]
[Email Removed For Privacy Reasons]
New Delhi
27.01.2022
11:06 pm

I have one question regarding maternity benefits.

1. Is the medical bonus mandatory or not?

Thank you.

Dear CiteHR member Shri Ashoka ji,

Re: Payment of Medical Bonus to beneficiaries under Maternity Benefit Act 1961

The question posted by you is a public utility query of which every female employee/worker (including contract workers) should be aware.

It may be noted that Section 8 of the MB Act 1961 makes it mandatory that an employer shall pay to every woman entitled to maternity benefit an amount of Rs. 3500/- (Rupees Three thousand five hundred) if no prenatal confinement or postnatal care is provided by the employer free of charge. This is in terms of Gazette Notification no. SO2831(E) dated 19/12/2011 of the Central Govt.

I hope this answers your query and it will be a knowledge addition to all female employees.

If there is any other Central Govt. or State Govt. notification, the same should be brought to the platform of this forum to add to everyone's knowledge.

Regards and with best wishes to all,

Chandra Mani Lal Srivastava
Master Consultant
[Phone Number Removed For Privacy-Reasons]
[Email Removed For Privacy Reasons]
New Delhi/28.01.2022/7:20 pm