Maternity Leave in India: Rules, Eligibility & Benefits

The Indian culture celebrates nurturing and cherishing expectant and new mothers. Women in the workforce worry about taking time off from their responsibilities to focus on their newborns. According to a study, women who took paid maternity leave reported a 47% decline in re-hospitalisation odds for infants and themselves. It also gives the mother ample time to bond with the infant.The Indian Maternity Benefit Act, 1961, defines paid leave, maternity benefits, nursing breaks, and medical bonuses for expectant working women. Both employers and employees must be aware of these rights and policies to improve the workplace culture and empower women.Let’s dive deeper into maternity leave policies in India and learn simple ways employers can make their office spaces welcoming for new and expectant mothers. Also read: All You Need to Know About Sabbatical Leave

Companies should be considerate towards pregnant women when it comes to breaks and leaves. The feeling of support towards Indian mothers, both before and after pregnancy, is an integrated part of Indian culture. This is why it is necessary to have that same support in the workplace as well. This is where maternity leave comes in. Maternity leave policy is essential for the following reasons:

• To support women to be economically independent and self-reliant before, during, and after pregnancy
• To assure that women need not suffer from loss of pay for bearing a child
• To encourage women to continue working after having children
• To protect the dignity of motherhood and childbirth
• To reduce hardships faced by the female workforce in balancing work, family, and children without stress

The Maternity Benefit Act was passed in 1961 to ensure pregnant women receive mandated benefits during maternity leave. This includes paid leave, a medical bonus, and a nursing break. Employers are prohibited from dismissing or firing pregnant women. They are also not allowed to change the employment conditions based on the pregnancy status of the women. The 1961 Act was a much awaited change to the basic 1928 Act that did not offer much job security.As per the 1961 Act, women are entitled to 12 weeks of paid maternity leave, which cannot be taken until six weeks before the due date. They must be paid their regular remuneration as per the average daily salary. They are also eligible for a medical bonus and other maternity benefits. The employer is liable to pay all the maternity benefits to the nominee or legal representative in case of the unfortunate demise of the woman entitled to such maternity benefits.

In 2017, several amendments were made to support the modern female workforce. These amendments came into effect from July 2021. Some of the changes made to the maternity rules in India are:

• Increased Leave Duration Maternity leave is extended from 12 to 26 weeks for the first two child births. This translates to six months of paid leave from work. The employee can take this leave 8 weeks before the delivery due date.
• Adoption Leave For the first time in India, mothers who adopt a child younger than three months are also entitled to 12 weeks of paid leave. The adoption leave begins on the date when the child is formally adopted. This change is made to support bonding between mothers and adopted children.
• Commissioning Mothers Maternity benefits also extend to commissioning mothers who use their eggs and choose surrogacy to give birth. They are entitled to 26 weeks of paid maternity leave to care for their newborn.
• Surrogate Mothers A surrogate mother for someone else's child is entitled to 12 weeks of paid maternity leave to recover from childbirth.
• Work From Home Arrangements After the 26 weeks of maternity leave, women can make work-from-home arrangements. However, this is not mandated, and it depends on the employer to offer this flexibility. The employer and employee must mutually agree on such an arrangement.
• Leave Extension In specific medical situations, like illness or preterm birth, women are eligible to take an additional 6 weeks on top of the 26 weeks of mandated maternity leave. This allows them to recover well and care for their newborns.
• Medical Expenses Coverage Based on the insurance policy, the employer must cover medical expenses for pregnancy, childbirth, and postnatal care. It includes hospitalisation fees, doctor fees, and medicines.
• Full Wage Payment During maternity leave, women are entitled to their full wage payment. It provides financial security during the recovery period.
• Nature of Work Employers cannot force a woman within 10 weeks before the due date to do any strenuous work that can interfere with her pregnancy.
• Miscarriage A woman is also entitled to maternity benefits for 6 weeks immediately after the day of miscarriage.
• Crèche Availability Any company with at least 50 employees must include a crèche facility within the prescribed distance. The mother can visit the crèche 4 times daily, along with the rest interval.
• Nursing Break A woman who returns to work after her maternity leave is eligible for 4 nursing breaks to nurse the child until it reaches 15 months of age. Each nursing break can last for up to 15 minutes.
• Improved Awareness Every employer must create awareness within the company about maternity benefits. When they hire a female employee, they must issue this information in written format or electronically at the time of appointment. The benefits must be communicated according to the Act.

Working women are eligible for maternity leave in India under the following conditions:

• They must have worked with the company for at least 80 days in the 12 months before the expected delivery date.
• This applies to pregnant women (extends to women who experience miscarriages), adopting, or commissioning mothers.
• Maternity paid leave of 26 weeks applies for the first two childbirths whereas 12 weeks is applicable for the third child.
• The benefit also extends to women who had tubectomy (eligible for 2 weeks of paid leave from the operation date).
• One-month additional leave for women who suffer from post-pregnancy complications.
• All women employed in government or private offices are eligible for 26 weeks of paid maternity leave.

There are certain maternity benefits provided by the government to all expectant (biological, adoptive, commissioning, or surrogate) working women. These benefits include the following:

• All employers must provide maternity coverage under the group health insurance policy . However, the extent of coverage depends on the insurance policy and the insurance provider.
• Employers cannot fire pregnant or post-partum women.
• New mothers can also ask for additional leave if they cannot return to work immediately after the maternity leave.
• Pre-natal leave has been extended to 8 weeks from six weeks before delivery. This is also considered a part of the maternity leave period. Women can take this maternity leave within six months of delivery, even though no specific starting date is required.
• As a part of maternity leave benefits, the employer must provide a medical bonus of Rs. 3,500 and at least Rs. 6,000 to promote the new mother's health as per the National Food Security Act 2013.
• HR departments in companies are urged to implement supportive measures such as wellness programmes, counselling services, flexible working models, childcare services, etc., to support new mothers.

All women in the private sector must get a leave structure from their employer. Any employer who fires a woman during the maternity leave period or on the first day of returning to work will be charged a fine of Rs. 5,000 or face jail term as per the law. Also read: Buying Life Insurance During Pregnancy? What You Should Know

The rules and regulations under the policy discussed above apply to all the private companies in India.

• Private companies must update their HR policies to ensure business continuity when multiple female employees simultaneously go on maternity leave. Without contingency plans, it can result in decreased productivity.
• Women look for companies with supportive maternity policies. Organisations must create a culture that supports new and expectant mothers to retain top talent.
• A well-defined HR strategy for managing maternity benefits is crucial to boosting morale in the workplace and includes non-eligible employees.

Maternity benefits are a great way to support the female workforce. However, they also entail some additional costs that can be challenging for some employers to bear, especially SMEs and start-ups. This is why the government has introduced the Maternity Leave Incentive Scheme in 2018. It provides some relief to employers by reimbursing them for wages paid to expectant women during their maternity leave.

Creating awareness about maternity leave rules among employers and employees in India is essential. Failure to provide maternity benefits can expose employers to legal ramifications for the employers. A lack of awareness about entitlements may result in women losing maternity benefits. The expense of maternity benefits should not be a deterrent for companies when considering hiring women. Choosing the right insurance provider by the firm and finding the right policy can maximise benefits for female employees while reducing insurance costs. Also read: The Cost of Raising a Child in India – How Much Money is Required?