Maternity Leave in India 2025: Rules, Eligibility, Benefits & Challenges

Maternity leave is a fundamental right for working women, ensuring they receive adequate time to recover from childbirth and bond with their newborns. In India, the Maternity Benefit Act, 1961, has undergone significant amendments to address the evolving needs of working mothers. This blog delves into the current rules, eligibility criteria, benefits, and challenges associated with maternity leave in India as of 2025.

Evolution of Maternity Leave in India

• 1961: The Maternity Benefit Act was enacted to protect the employment of women during maternity and entitle them to a ‘maternity benefit’—i.e., full paid absence from work—to take care of their child.

• 2017 Amendment: The Act was amended to extend paid maternity leave from 12 weeks to 26 weeks for the first two children. It also introduced provisions for adoptive and commissioning mothers, work-from-home options, and mandatory crèche facilities in establishments with 50 or more employees.

• 2020: The Code on Social Security consolidated various labor laws, including the Maternity Benefit Act, aiming to provide comprehensive social security to all workers, including those in the unorganised sector.

Also read: What is Paternity Leave?

Maternity Leave Rules in India (2025)

• Duration of Leave: 26 weeks for the first two children (up to 8 weeks before delivery). 12 weeks for the third child onwards, adoptive mothers, and commissioning mothers.

•  Work-from-Home Option: Employers may offer work-from-home arrangements post-maternity leave, depending on the nature of the work and mutual agreement.

• Crèche Facilities: Establishments with 50 or more employees are required to provide crèche facilities within a prescribed distance, allowing mothers to visit the facility four times a day.

Maternity Leave Eligibility Criteria

To avail maternity leave, a woman must:

• Have worked for at least 80 days in the 12 months immediately preceding the expected delivery date.

• Be employed in establishments with 10 or more employees.

• In case of adoption or commissioning, the leave is granted from the date the child is handed over.

Suggested read: What is Bereavement Leave?

Benefits of Maternity Leave

Maternity leave goes far beyond being a statutory entitlement—it is a policy that safeguards the health of the mother, the well-being of the child, and the long-term interests of the organisation. Its benefits can be looked at from three lenses: the employee, the employer, and society at large.

For Employees

• Physical Recovery and Health: Childbirth is both physically and emotionally demanding. Extended leave allows mothers to heal from delivery, whether normal or cesarean, reducing risks of complications and ensuring they return to work healthier and stronger.

• Emotional Bonding with the Child: The early months are critical for mother-infant bonding, which influences the child’s emotional and cognitive development. Maternity leave ensures mothers can breastfeed, establish routines, and nurture their newborn without work-related stress.

• Job and Income Security: With full wages during the leave period, women don’t have to choose between financial stability and family needs. Knowing their job is protected helps them focus on recovery and childcare.

• Mental Well-being: Absence of job insecurity during maternity helps reduce postpartum anxiety or depression, which often gets triggered by financial or career-related stress.

For Employers

• Higher Retention and Loyalty: Companies that support maternity leave see higher employee loyalty. Women are more likely to return to the same employer after childbirth, saving recruitment and training costs.

• Enhanced Employer Branding: Family-friendly policies improve a company’s reputation, making it more attractive to top talent, especially women professionals.

• Increased Productivity Post-Return: Employees who feel supported during maternity leave often return more engaged, motivated, and loyal, contributing positively to workplace culture.

• Diversity and Inclusivity: Offering maternity leave is a step towards gender-balanced workplaces. It signals commitment to equal opportunity and long-term career growth for women.

For Society

• Healthier Families: With adequate time for recovery and care, both mothers and children are healthier, reducing long-term healthcare costs.

• Greater Female Workforce Participation: When women are assured of job protection, they are more likely to remain in the workforce after childbirth, helping bridge India’s gender gap in employment.

• Economic Growth: Increased female participation contributes significantly to GDP growth. According to McKinsey Global Institute, India could add $770 billion to its GDP by 2025 if more women joined and stayed in the workforce.

• Social Equity: Maternity leave represents a societal commitment to fairness and gender equity, ensuring women are not forced to abandon careers due to family responsibilities.

Also read: HR’s Guide to Maternity Healthcare Benefits

Financial Aspects of Maternity Leave

The financial dimension of maternity leave is as crucial as the leave itself. Without wage protection, maternity benefits lose their effectiveness, as women may feel pressured to return to work prematurely or even drop out of the workforce.

The Maternity Benefit Act, along with supporting government schemes, ensures that maternity leave in India is not only job-protected but also financially secure.

1. Salary and Wage Entitlement

Women are entitled to full wages during maternity leave, equivalent to their average daily wage. This wage is calculated based on the average of the last three months of salary before the leave begins, ensuring fairness and consistency. Benefits cover not just basic pay but also allowances that form part of regular earnings, excluding bonuses and overtime.

For women under the Employees’ State Insurance (ESI) Act, benefits are disbursed through the ESI Corporation, rather than directly by the employer, provided their wages fall below the prescribed ceiling (currently ₹21,000 per month).

2. Employer’s Liability

The cost of maternity leave benefits generally falls on the employer, particularly in the organised sector. This includes:

• Salary payments during leave.
• Maintenance of crèche facilities (for establishments with 50+ employees).

Any additional leave benefits (such as extended medical leave) as per internal HR policy. For small and medium enterprises (SMEs), this financial burden can feel heavy, often leading to resistance or hesitance in hiring women of childbearing age. However, non-compliance can invite penalties, fines, or even prosecution under the Maternity Benefit Act.

3. Government Support

Pradhan Mantri Matru Vandana Yojana (PMMVY): Provides a direct cash benefit of ₹6,000 in three installments to eligible women for their first live birth. This acts as partial wage compensation and nutritional support during and after pregnancy.

ESI Scheme: Women registered under ESI receive maternity benefits at the rate of full wage for 26 weeks, subject to contribution requirements.

State Schemes: Some states have introduced additional welfare schemes, providing cash assistance or subsidised healthcare to pregnant women in the unorganised sector.

4. Tax and Compliance Considerations

From the employee’s side, maternity benefits are treated as salary income and taxed accordingly. However, certain allowances linked to medical reimbursement may be tax-exempt within specified limits.

For employers, maternity benefit expenses are a deductible business expense under the Income Tax Act, reducing overall tax liability. Companies must also ensure compliance with reporting and record-keeping under labor laws. Any denial or delay in disbursing maternity benefits can lead to penalties, litigation, and reputational harm.

Also read: Section 80D of the Income Tax Act

Maternity Leave Challenges in Implementation

While India’s maternity leave framework is progressive on paper, its real-world application reveals significant gaps. The law provides a strong foundation, but a mix of economic, cultural, and structural barriers often prevents women from fully accessing their rights.

1. Awareness Gaps Among Women

A large portion of women, particularly in rural areas and the unorganised sector, are unaware of their maternity rights under the law. Many workers—such as domestic helpers, daily wage earners, and gig economy participants—may not even know that such benefits exist, leading to underutilization. This lack of awareness is compounded by insufficient outreach from employers and government bodies.

2. Employer Resistance and Cost Burden

In India, maternity leave is primarily funded by employers (except in cases covered by the ESI Act). For small and medium enterprises (SMEs), this direct cost can feel prohibitive. This has led to subtle hiring biases—some employers avoid hiring women of childbearing age to “reduce risk.” Even in larger organisations, women may face indirect discouragement or stigma if they announce pregnancy, fearing they might “burden” the team.

3. Job Insecurity and Workplace Stigma

Despite statutory protection, many women worry about job continuity during maternity leave. Some return to find they’ve been sidelined from key projects or denied promotions. Others face hostile workplace attitudes that push them to resign. Postpartum women may also experience bias in performance evaluations, as employers wrongly assume reduced commitment.

4. Sectoral Divide: Organized vs. Unorganized Workforce

The benefits of maternity leave are largely concentrated in the organised sector, which employs only a fraction of India’s female workforce. The unorganised sector, where most women work (agriculture, domestic work, small businesses, gig roles), still lacks uniform protections. Although schemes like the Pradhan Mantri Matru Vandana Yojana exist, they provide only partial wage compensation, which is insufficient to cover lost income.

5. Compliance and Enforcement Challenges

While the law mandates maternity benefits, enforcement remains weak. Many employers either do not comply or manipulate contracts to avoid liability (e.g., keeping women on temporary contracts). Grievance redressal mechanisms are often slow and intimidating, discouraging women from raising complaints. Lack of proactive labor inspections means violations frequently go unreported.

Recommended read: Maternity Hospital Bag Checklist

Recent Legal Developments

• Supreme Court Ruling (2025): The Supreme Court of India ruled that maternity leave is a constitutional right, extending to all women, including those with multiple children. This landmark decision emphasizes the importance of maternity benefits as a fundamental right linked to a woman’s dignity and justice.

• State-Level Initiatives: Some states, like Odisha, have issued guidelines standardising the implementation of maternity leave, including provisions for miscarriage and infant death.

The Road Ahead

• Inclusive Policies: There’s a growing push for inclusive maternity leave policies that cover women in the unorganised sector, gig economy, and those on temporary contracts.

• Employer Support: Encouraging employers to adopt family-friendly policies, such as flexible working hours and childcare facilities, can enhance the effectiveness of maternity leave provisions.

• Public Awareness: Increasing awareness through campaigns and training can empower women to claim their maternity rights and ensure compliance by employers.

Conclusion

Maternity leave is not just a statutory requirement but a crucial component of women’s empowerment and workplace equality. While significant strides have been made in India, challenges remain in ensuring universal access and compliance. Continued efforts from the government, employers, and society are essential to create a supportive environment for working mothers.

FAQs: