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Guides · Statutory compliance for employers
The Maternity Benefit Act, 1961 — as amended in 2017 — applies to establishments with 10 or more employees. An eligible woman is entitled to 26 weeks of paid leave for her first two children, protection from dismissal during that leave, nursing breaks, and — in establishments of 50 or more — a creche facility. This guide sets out each duty in plain terms.
General guidance, not legal advice
The short answer
Any establishment with 10 or more employees must give an eligible woman — one who has worked 80 days in the preceding 12 months — 26 weeks of paid maternity leave for her first two children (12 weeks for the third onward, and for commissioning and adopting mothers). Employers with 50+ staff must also provide a creche, and cannot dismiss a woman during her leave.
Compliance is more than granting leave. These six duties together make up an employer’s obligations under the Act.
A woman is entitled to 26 weeks of paid maternity leave for her first two surviving children, of which up to 8 weeks may be taken before the expected delivery. For the third child onward the entitlement is 12 weeks.
A commissioning mother (through surrogacy) and a mother adopting a child below three months of age are each entitled to 12 weeks’ leave, counted from the date the child is handed over.
Where the employer does not provide free pre-natal and post-natal care, a medical bonus of ₹3,500 is payable in addition to maternity leave and wages.
Every establishment with 50 or more employees must provide a creche, within prescribed distance, and allow the mother a set number of visits a day in addition to her rest breaks.
Where the nature of the work allows, the employer may offer work from home after the leave period, on terms mutually agreed with the employee.
An employer cannot dismiss or discharge a woman during her maternity leave, and nursing breaks continue until the child is 15 months old.
The single most common point of confusion is who funds the maternity wages. For most establishments covered by the Maternity Benefit Act, the employer pays the wages directly for the full leave period.
Where a woman is covered under ESIC — that is, she earns up to ₹21,000 a month in an ESIC-notified area — the maternity benefit is instead paid by ESIC as a cash benefit. The two do not run together for the same period, so identify at the outset which scheme applies to each employee and record it clearly in payroll.
The Act guarantees paid time off and job protection — it does not pay the hospital bill for the delivery itself. That gap is usually filled by a group health policy with a maternity benefit, which covers the cost of childbirth (and, on many plans, the newborn from day one) up to a defined limit.
An employer group health insurance plan with a maternity rider turns the statutory floor into a benefit employees genuinely feel — paid leave from the Act, and a covered delivery from the policy.
The Maternity Benefit Act, 1961 applies to every establishment — factory, shop or commercial establishment — employing 10 or more persons. Once it applies, it covers eligible women employees regardless of whether they are permanent, contractual or on probation.
Following the 2017 amendment, a woman is entitled to 26 weeks of paid maternity leave for her first two surviving children, with up to 8 weeks available before the expected delivery date. For the third child and beyond, the entitlement is 12 weeks. Commissioning and adopting mothers (of a child under three months) get 12 weeks.
A woman qualifies for maternity benefit if she has worked for the employer for at least 80 days in the 12 months immediately before her expected date of delivery. The benefit is paid at the rate of her average daily wage for the period of her actual absence.
For most establishments covered by the Maternity Benefit Act, the employer pays the maternity wages directly. For women covered under ESIC (wages up to ₹21,000 a month in ESIC-notified areas), the maternity benefit is paid by ESIC instead. The two schemes do not run together for the same period — an employer should confirm which applies to each employee.
Yes. Since the 2017 amendment, every establishment with 50 or more employees must provide a creche facility, either on its own or through a shared arrangement, within a prescribed distance. The mother is allowed a set number of visits to the creche during the working day, over and above her normal rest interval.
Statutory leave protects the time off; a maternity benefit on a group health plan covers the hospital bill. Give your team both with Onsurity — cashless cover at 10,000+ network hospitals on a monthly subscription.
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