Hi, I have been working in a company for 2.6 years. I am planning to go on maternity leave from 22nd Jan. '17 as my due date is around the same time. Currently, maternity leave in India is around 6 months, and I would like to understand how much salary I am eligible to receive. My basic pay is approximately 20K per month. In addition to this, my salary includes HRA, special allowance, and conveyance, totaling around 64K per month (from which PF deduction is made).
Could you please guide me on what percentage of my salary I am entitled to receive during my 6 months of maternity leave?
Thanks & Regards, Neha
From India, Gurgaon
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Could you please guide me on what percentage of my salary I am entitled to receive during my 6 months of maternity leave?
Thanks & Regards, Neha
From India, Gurgaon
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You will receive the same salary that you have been receiving now during your leave days. From the gross salary, only components like reimbursements (such as telephone reimbursement, fuel reimbursement, etc.) and variable incentives (which are paid based on your performance) will not be available to you. Obviously, PF will be deducted from the salary during maternity leave days as well.
From India, Kannur
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4526From India, Kannur
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Thank you, Madhu, for the information. According to my company, they are stating that, per the law, they are only obligated to pay the basic salary (around 20K per month). Please advise on how I should present my point to them.
From India, Gurgaon
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From India, Gurgaon
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Definition of Wages Under the Maternity Benefit Act
Please see the definition of wages under the Maternity Benefit Act, extracted below:
(n) "wages" means all remuneration paid or payable in cash to a woman, if the terms of the contract of employment, express or implied, were fulfilled and includes:
1. such cash allowances (including dearness allowance and house rent allowances) as a woman is for the time being entitled to,
2. incentive bonus, and
3. the money value of the concessional supply of food grains and other articles but does not include:
(i) any bonus other than incentive bonus;
(ii) overtime earnings and any deduction or payment made on account of fines;
(iii) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the woman under any law for the time being in force; and
(iv) any gratuity payable on the termination of service.
So, the wages to be paid definitely include DA & HRA but generally, Conveyance Allowance is paid contingent on the performance of actual duty which would not be payable in case one is not attending duties. As regards Special Allowance, it is not a standard item, and the nature of payment has to be seen. But as a matter of a general principle, follow what Mr. Madhu Sir has stated above, if the allowance is payable during leave then it is payable during maternity leave too.
From India, Mumbai
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Please see the definition of wages under the Maternity Benefit Act, extracted below:
(n) "wages" means all remuneration paid or payable in cash to a woman, if the terms of the contract of employment, express or implied, were fulfilled and includes:
1. such cash allowances (including dearness allowance and house rent allowances) as a woman is for the time being entitled to,
2. incentive bonus, and
3. the money value of the concessional supply of food grains and other articles but does not include:
(i) any bonus other than incentive bonus;
(ii) overtime earnings and any deduction or payment made on account of fines;
(iii) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the woman under any law for the time being in force; and
(iv) any gratuity payable on the termination of service.
So, the wages to be paid definitely include DA & HRA but generally, Conveyance Allowance is paid contingent on the performance of actual duty which would not be payable in case one is not attending duties. As regards Special Allowance, it is not a standard item, and the nature of payment has to be seen. But as a matter of a general principle, follow what Mr. Madhu Sir has stated above, if the allowance is payable during leave then it is payable during maternity leave too.
From India, Mumbai
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Clarification on Special Allowance and Statutory Salary
KK has clarified the point. Regarding the special allowance, the interpretation is that if the special allowance is paid commonly to all employees, it should be considered part of the statutory salary for all purposes. The same ruling applies here as well. It is unfortunate that your management has taken a different view on salary, choosing to include only the basic pay.
A Tagline from Madhu T K
A successful HR person is one who denies benefits to employees following the directions of top management, completely diluting professional ethics. This person receives appreciation from employers and is recommended for the Best HR Practices Award. This tagline is based on my experience over the past 30-plus years. I have seen Management Associations applauding HR professionals who are unaware of legal stipulations and how to engage workers by providing the best HR practices. They may excel in presentations on employee engagement and English communication, but they may be lacking in people management skills.
Neha's Company HR Practices
Regrettably, Neha's company HR falls into this category. If your company management states that you will be paid only basic pay, you should accept it. This is because, in practice, you cannot file a complaint before the appropriate authority and fight for justice. Although women are empowered, in situations like this, nobody will come to your aid. In fact, when the proposal for amending the Maternity Benefit Act was introduced, I posted on this forum that it would result in reduced employment for women because employers would not find it affordable to pay six months' salary, even if these employers include women entrepreneurs. However, once enforced, it should be implemented, and you cannot deviate from the law.
Options and Repercussions
Anyway, you may speak to the HR Manager there, and if he is not convinced, you can either fight for justice or accept what your company says.
Repercussions of Taking Action
If you choose to take the issue to the Labour Office, please ensure you have support from others, including women's rights forums. If successful, you may receive justice in the form of full salary during maternity leave. I am unsure what will happen when the leave period is over and you resume your duties. They will not terminate your service, but I cannot guarantee your performance appraisal rating. You may also anticipate a change in your work profile.
If you opt for the second option, you will be receding from your values and rights as a woman. That also is not right. However, you can expect continuity of employment, fair appraisal, etc.
Think and act.
From India, Kannur
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KK has clarified the point. Regarding the special allowance, the interpretation is that if the special allowance is paid commonly to all employees, it should be considered part of the statutory salary for all purposes. The same ruling applies here as well. It is unfortunate that your management has taken a different view on salary, choosing to include only the basic pay.
A Tagline from Madhu T K
A successful HR person is one who denies benefits to employees following the directions of top management, completely diluting professional ethics. This person receives appreciation from employers and is recommended for the Best HR Practices Award. This tagline is based on my experience over the past 30-plus years. I have seen Management Associations applauding HR professionals who are unaware of legal stipulations and how to engage workers by providing the best HR practices. They may excel in presentations on employee engagement and English communication, but they may be lacking in people management skills.
Neha's Company HR Practices
Regrettably, Neha's company HR falls into this category. If your company management states that you will be paid only basic pay, you should accept it. This is because, in practice, you cannot file a complaint before the appropriate authority and fight for justice. Although women are empowered, in situations like this, nobody will come to your aid. In fact, when the proposal for amending the Maternity Benefit Act was introduced, I posted on this forum that it would result in reduced employment for women because employers would not find it affordable to pay six months' salary, even if these employers include women entrepreneurs. However, once enforced, it should be implemented, and you cannot deviate from the law.
Options and Repercussions
Anyway, you may speak to the HR Manager there, and if he is not convinced, you can either fight for justice or accept what your company says.
Repercussions of Taking Action
If you choose to take the issue to the Labour Office, please ensure you have support from others, including women's rights forums. If successful, you may receive justice in the form of full salary during maternity leave. I am unsure what will happen when the leave period is over and you resume your duties. They will not terminate your service, but I cannot guarantee your performance appraisal rating. You may also anticipate a change in your work profile.
If you opt for the second option, you will be receding from your values and rights as a woman. That also is not right. However, you can expect continuity of employment, fair appraisal, etc.
Think and act.
From India, Kannur
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"As per my company, they are saying that according to the law, they are entitled to pay only the basic salary (around 20K per month). Please suggest how I should convey my point to them."
Understanding the Maternity Benefit Act
Please inform your HR about the provisions of the Maternity Benefit (MB) Act and direct them to the definition of wages in the said Act, which is clear. Maternity leave is granted with full pay after completing at least 80 days in an establishment within the 12 months before the expected delivery date. Maternity benefits are provided at the average daily wage rate for the worker's actual absence from work. In addition to 12 weeks of salary, a female worker is eligible for a medical bonus of 3,500 Indian rupees.
It is expected that every HR department dealing with female workers in most establishments is aware of these rules.
From India, Pune
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Understanding the Maternity Benefit Act
Please inform your HR about the provisions of the Maternity Benefit (MB) Act and direct them to the definition of wages in the said Act, which is clear. Maternity leave is granted with full pay after completing at least 80 days in an establishment within the 12 months before the expected delivery date. Maternity benefits are provided at the average daily wage rate for the worker's actual absence from work. In addition to 12 weeks of salary, a female worker is eligible for a medical bonus of 3,500 Indian rupees.
It is expected that every HR department dealing with female workers in most establishments is aware of these rules.
From India, Pune
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Maternity Leave Policy - posting.doc
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