Maternity Leave Payments: Can They Be Made Monthly Instead of Lump Sum?

Hi, I am working in a corporate environment where the number of female employees is 10. The company has a policy of providing maternity leave payment after rejoining the office, which means the lump sum amount is paid after 6 months when the employee returns to the office, rather than on a monthly basis.

Is there anything an employee can do about this? Is there any section specifying that the payment should be made monthly?

Hi,

Section 6 of The Maternity Benefit Act, 1961

Section 6 of The Maternity Benefit Act, 1961, states the procedures for claiming maternity benefits. Any woman working in an establishment and eligible for maternity benefits as per this Act must notify her employer in writing using the prescribed form. This notice should indicate whether the benefits should be paid to her or a nominated person and that she will not work during the maternity benefit period.

For pregnant women, the notice must include the date from which they will be absent from work, which cannot be earlier than six weeks prior to the expected delivery date. If the notice was not given during pregnancy, it should be submitted promptly after delivery.

Upon receiving the notice, the employer must allow the woman to be absent from work during the maternity benefit period. The maternity benefit amount before the expected delivery date should be paid in advance, with the subsequent amount to be paid within forty-eight hours after proof of delivery is provided.

Failure to give notice does not disqualify a woman from receiving maternity benefits if she is otherwise entitled. In such cases, an Inspector can order the payment within a specified period.

Reference to Section 6(5) of the Maternity Benefit Act

Reference Section 6(5) of the Maternity Benefit Act for details on the payment of maternity benefits. It is improper to delay payment until the employee resumes work after 182 days.

Thank you.

But in Section 6(5) of the Maternity Benefit Act, it is not mentioned that the employer is required to give monthly payments to the employee.

Hi, actually, as per the Act, benefits need to be paid in advance. However, some employers follow the practice of making the payment on a monthly basis.

"Maternity benefit payment"

Maternity benefit for the period preceding the date of her expected delivery shall be paid in advance by the employer to the woman on production of such proof as may be prescribed that the woman is pregnant, and the amount due for the subsequent period shall be paid by the employer to the woman within forty-eight hours of production of such proof as may be prescribed that the woman has been delivered of a child.

Receiving the benefit in advance is better than getting it on a monthly basis, isn't it?

Hi, To supplement Mr. L N's answer, let's examine the issue from two perspectives:

According to legal provisions:

Subsection 5 of Section 6 clearly states that:
(a) Prenatal benefits should be paid in advance.
(b) Postnatal benefits should be paid within 48 hours.

As per industry practice:

(a) Prenatal benefits, if opted for, are paid on a monthly basis.
(b) Postnatal benefits are also paid on a monthly basis.

It's apparent from the above that your proposed action plan does not conform to either the legal provisions or the prevailing industry practice. Nevertheless, there is no written guideline specifying monthly payments in the law.

Please consider this information and take appropriate action.