Compliance & Safety

Maternity Benefit Act

The Maternity Benefit Act, 1961 gives eligible women employees in India paid maternity leave and related protections, such as crèche access.

What is the Maternity Benefit Act?

The Maternity Benefit Act, 1961 is the central law that protects the employment of women during maternity and entitles them to paid maternity leave. It was significantly amended in 2017. As part of India's labour code reforms, its provisions are being consolidated into the Code on Social Security, 2020; employers should check how the code and the related central and state rules apply to them.

Key features, as widely understood after the 2017 amendment:

Women covered by ESI generally receive maternity benefit through the ESI scheme rather than directly from the employer.

Thresholds, eligibility details and how the provisions apply under the labour codes should always be confirmed with counsel.

Why it matters for employers

Compliance is the baseline. Beyond it, how an organization supports women before, during and after maternity strongly shapes retention and trust. Practical areas to consider:

  1. A clear, written maternity policy shared during onboarding
  2. Manager guidance on planning cover and handling return-to-work conversations sensitively
  3. Health support during pregnancy and after childbirth, such as consultations, nutrition advice and mental wellness support
  4. Maternity cover in group health insurance, including whether waiting periods are waived
  5. Phased return or flexible arrangements where roles allow

Example

An IT services company reviews its maternity policy after the 2017 amendment and updates leave to 26 weeks, sets up a crèche tie-up near its campus and adds a structured return-to-work plan. It also offers access to doctors and counsellors for women's health topics, so employees have support beyond the statutory leave.

Key takeaways

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