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You are here: Home / CGE LATEST NEWS / Maternity Leave Incentive Scheme clarified by Ministry of Labour & Employment
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Maternity Leave Incentive Scheme clarified by Ministry of Labour & Employment

December 10, 2018 GEDWEBZIP

Maternity Leave Incentive Scheme clarified by Ministry of Labour & Employment

Ministry of Labour & Employment
Clarification regarding Maternity Leave Incentive Scheme

16 NOV 2018

In a section of media, there have been some reports about Maternity Leave Incentive Scheme. In this regard, the Ministry of Labour & Employment has clarified the following –

Background– (i) The Maternity Benefit Act, 1961 applies to establishments employing 10 or more than 10 persons in Factories, Mines, Plantation, Shops & Establishments and other entities. The main purpose of this Act is to regulate the employment of women in certain establishments for certain period before and after child birth and to provide maternity benefit and certain other benefits. The Act was amended through the Maternity Benefit (Amendment) Act, 2017 which, inter alia, has increased the paid maternity leave to women employees from 12 weeks to 26 weeks.

ii. While the implementation of the provision is good in Public Sector, there are reports that it is not good in Private Sector and in contract jobs. There is also a wide perception that private entities are not encouraging women employees because if they are employed, they may have to provide maternity benefit to them, particularly 26 weeks of paid holiday. In addition, the Ministry of Labour & Employment is also getting complaints from various quarters that when the employers come to know that their women employee is in the family way or applies for maternity leave, the contracts are terminated on some flimsy grounds. There have been several representations before the Labour Ministry on how the extended maternity leave has become a deterrent for female employees who are asked to quit or retrenched on flimsy grounds before they go on maternity leave.

iii. Therefore, the Ministry of Labour & Employment is working on an incentive scheme wherein 7 weeks’ wages would be reimbursed to employers who employ women workers with wage ceiling upto Rs. 15000/- and provide the maternity benefit of 26 weeks paid leave, subject to certain conditions. It is estimated that approximately an amount of Rs. 400 crores would be the financial implication for Government of India, Ministry of Labour & Employment for implementing the proposed incentive scheme.

Major Impact: The proposed Scheme, if approved and implemented shall ensure the women in this country an equal access to employment and other approved benefits alongwith adequate safety and secure environment. Also, the women shall continue to bear the major share of household work as well as child care. The work places will be more and more responsive to the family needs of the working women.

Current Stage of the Proposal:

There are some media reports that this Scheme has been approved/notified. However, it is clarified that Ministry of Labour & Employment is in the process of obtaining necessary budgetary grant and approvals of Competent Authorities. The reports that it will be funded from Labour Welfare Cess, is also incorrect, as no such cess exists under this Ministry.

Source: PIB

Related posts:

  1. Maternity Benefit of 26 weeks paid leave – PIB
  2. Maternity Leave – Lok Sabha Q&A
  3. Paid maternity leave to women employed by private organizations and companies
  4. Increased Maternity Leave -(current 12 weeks to 26 weeks )
  5. Maternity Leave in Private Sector 
  6. Increase Maternity Benefit from 12 weeks to 26 weeks
  7. Clarification on Recently Notified Maternity Benefit (Amendment) Act,2017
  8. Tamil Nadu Leave Rules – Maternity Leave – Enhancement of Maternity Leave to 180 days – Amendment – Orders – Issued
  9. Tamil Nadu Leave Rules – Maternity Leave – Enhancement of Maternity Leave to 180 days – Orders – Issued.
  10. FAQ on Maternity Leave
  11. Maternity Benefit (Amendment) Act
  12. Government Approves Labour and Employment Ministry Proposal to Accept The Recommendations of the Wage Boards Headed by Justice Majithia
  13. Ministry of Labour and Employment Moves Forward for Implementation of Amended Apprentices Act
  14. Lok Sabha Passes Maternity Benefits (Amendment) Bill, 2016
  15. ENGAGEMENT OF CONSULTANT IN THE MINISTRY OF LABOUR & EMPLOYMENT
  16. AMENDMENT TO MATERNITY BENEFITS ACT
  17. BMS submission in the meeting called by Ministry of Labour and Employment on amending Rule 25
  18. PM lauds passage of Maternity Benefit Amendment Bill in Lok Sabha
  19. Smt. Krishna Tirath to Address Consultation on the Maternity Benefit Act 1961
  20. Maternity Benefit (Amendment) Act, 2017

Filed Under: CGE LATEST NEWS, PIB NEWS December 10, 2018 Leave a Comment

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