Maternity Benefit Act 1961: Compliance Guide for Indian Employers
The Maternity Benefit Act, 1961 (amended in 2017) is a landmark legislation that entitles women employees to paid maternity leave and protection against discrimination during pregnancy. The 2017 amendment increased paid leave from 12 weeks to 26 weeks, making India one of the most generous maternity benefit countries globally. The Act applies to every establishment employing 10 or more persons.
For employers, compliance is not optional—violations attract imprisonment up to 1 year and fines up to ₹5,000. Additionally, establishments with 50+ employees must provide crèche facilities within a prescribed distance.
Key Entitlements Under the Amended Act
| Benefit | Entitlement | Eligibility |
|---|---|---|
| Maternity Leave (1st/2nd child) | 26 weeks paid leave | 80 days worked in 12 months preceding delivery |
| Maternity Leave (3rd+ child) | 12 weeks paid leave | Same as above |
| Commissioning/Adopting Mother | 12 weeks from date child is handed over | Same as above |
| Crèche Facility | Mandatory for 50+ employees | All women employees with children |
| Work from Home | If nature of work permits | After maternity leave period on mutual agreement |
| Medical Bonus | ₹3,500 (if no prenatal/postnatal care by employer) | All eligible women employees |
Employer Obligations and Compliance
Payment During Leave
Maternity benefit = average daily wage × leave period. Average daily wage is calculated on wages for 3 months immediately preceding the date of expected delivery. Payment must be made within 48 hours of production of proof of pregnancy. Employers cannot terminate or discharge a woman during pregnancy or maternity leave.
Informing Employees
The 2017 amendment requires employers to inform women about maternity benefits at the time of their appointment. This must be done in writing and electronically. Display abstract of the Act at a conspicuous place in the establishment.
Key Takeaways
- ✓ 26 weeks paid maternity leave for first two children (12 weeks for third+)
- ✓ Mandatory crèche facility for establishments with 50+ employees
- ✓ Cannot terminate or discriminate against a woman during pregnancy or maternity leave
- ✓ Employer must inform women of maternity benefits at the time of appointment
- ✓ ESI-covered employees receive maternity benefit from ESI, not employer directly
Frequently Asked Questions
Does the Act apply to contract workers?
Yes, the Maternity Benefit Act applies to all women employees including contract and temporary workers, provided they have worked 80 days in the 12 months preceding delivery.
If a woman is covered under ESI, who pays maternity benefit?
For ESI-covered employees, maternity benefit (100% of average daily wages for 26 weeks) is paid by ESIC, not the employer. The employer pays only the difference if company policy provides more than the statutory amount.