Maternity Benefit Act vs. ESIC: Are Employees Earning Over Rs. 21,000 Covered?

As per the Maternity Act, if the ESIC Act is applicable, the Maternity Act is not applicable. If a company has more than 10 employees and ESIC registration, but since there are no eligible employees as per the ESIC Act (employees with wages more than Rs. 21,000), is the Maternity Act applicable or not?

When certain employment benefits of the same or similar nature are available under two separate enactments applicable to the same establishment, each one's applicability becomes exclusive based only on the eligibility of the employee seeking the benefit.

Therefore, for whatever reason, if an employee is beyond the coverage of the ESI Act, 1948, she would be entitled to benefits under the MB Act, 1961 if she is otherwise eligible when the Act is applicable to the establishment.

Maternity Benefits and ESI Act

The MB Act 1961 benefits are carried over to the ESI Act 1948 for eligible women employees. So, when the ESI Act is not applicable, the MB Act provisions automatically become applicable. In the ESI Act, the benefits are borne by the ESI Corporation, whereas in the MB Act, the employer is responsible.