Dear all,
Maternity Leave Benefits
This is regarding Maternity Leave Benefits. During Maternity Leave, the salary processed will be calculated based on the Basic Salary or the Cost to Company (CTC). As per the act, it is calculated on a daily wage basis. Kindly clarify whether we should pay based on the Basic Salary or the CTC.
Awaiting your response.
From India, Hyderabad
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Maternity Leave Benefits
This is regarding Maternity Leave Benefits. During Maternity Leave, the salary processed will be calculated based on the Basic Salary or the Cost to Company (CTC). As per the act, it is calculated on a daily wage basis. Kindly clarify whether we should pay based on the Basic Salary or the CTC.
Awaiting your response.
From India, Hyderabad
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Understanding CTC and Average Daily Wage
CTC is an all-inclusive term that includes many items which an employee doesn't receive as salary, such as gratuity.
Explanation of Average Daily Wage
The average daily wage is explained in the Act as follows:
Explanation: For the purpose of this sub-section, the average daily wage means the average of the woman's wages payable to her for the days on which she has worked during the period of three calendar months immediately preceding the date from which she absents herself on account of maternity, or one rupee a day, whichever is higher.
So, it is not limited to the basic pay but includes allowances that would have been payable had she been working on the days of maternity leave.
From India, Mumbai
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1593CTC is an all-inclusive term that includes many items which an employee doesn't receive as salary, such as gratuity.
Explanation of Average Daily Wage
The average daily wage is explained in the Act as follows:
Explanation: For the purpose of this sub-section, the average daily wage means the average of the woman's wages payable to her for the days on which she has worked during the period of three calendar months immediately preceding the date from which she absents herself on account of maternity, or one rupee a day, whichever is higher.
So, it is not limited to the basic pay but includes allowances that would have been payable had she been working on the days of maternity leave.
From India, Mumbai
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Maternity Benefit is not Salary.docx
SALARY SHEET CALCULATION.xls