An amendment to the Maternity Benefits Act, passed in March 2017, raised paid maternity leave for women from 12 weeks to 26 weeks, benefitting 1.8 million women workers in the organised sector.
New Delhi: The government is likely to clear before the interim budget a proposal to fund half of the paid leave amount that employers give in the extended maternity leave benefit scheme, as part of schemes planned for women voters ahead of the general election.
“The scheme is pending approval from finance ministry. Labour ministry is hopeful it will be cleared soon,” a senior labour ministry official, who did not wish to be named, told ET, adding that an announcement to this effect could be made in the interim budget.
As per the proposal, the government will pay the salary for seven weeks of extended leave under maternity benefits offered by companies. This amount will be reimbursed to employers who have engaged women workers with a wage ceiling up to Rs 15,000 and provide 26 weeks’ paid maternity leave.
The finance ministry had wanted to know the labour ministry’s intent behind the scheme and had sought clarifications on the proposal twice.
It is estimated that the scheme will cost the government about Rs 400 crore every year. It will reduce the cost pressure on companies and could also encourage hiring of women.
It is estimated that the scheme will cost the government about Rs 400 crore every year. It will reduce the cost pressure on companies and could also encourage hiring of women.
An amendment to the Maternity Benefits Act, passed in March 2017, raised paid maternity leave for women from 12 weeks to 26 weeks, benefitting 1.8 million women workers in the organised sector. The law applies to all establishments employing 10 or more people, and the entitlement applies only up to the first two children.
The labour ministry is of the view that the proposed scheme will ensure that women have equal access to employment and other approved benefits, along with safety and a secure environment. The proposal followed complaints from women’s organisations that employers are either not very keen on hiring female workers or they are being asked to leave just before maternity to avoid additional liability.
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