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Since its inception in 1961, the Maternity Benefit Act (“MB Act”) has served as a cornerstone of workplace protection for women during their maternal journey. Now, with the advent of the Code on Social Security, 2020 (“SS Code”), India embraces a more integrated approach to employee welfare. Embodies within Chapter VI (Sections 59-71) of this transformative legislation, maternity benefits have been reimagined not merely as workplace entitlements, but as essential components of a broader social security framework and Constitutional protection designed to support women across all sectors of the economy.
A. Comparative Analysis of Key Provisions – Old v. New:
|
Enactment |
MB Act | Consolidated under the SS Code |
|
Coverage |
Applies to establishments with ≥10 employees including factories, mines, plantations, shops. Limited coverage for unorganized sector, leaving out approximately 95% of India's female workforce | Similar applicability to establishments as per Schedule 1 of the SS Code. Expands coverage to include unorganized workers, gig workers, and platform workers through specific schemes |
|
Eligibility |
Women who have worked for at least 80 days in the 12 months preceding delivery | Maintains the same 80-day work requirement in the 12 months preceding delivery |
|
Duration of Leave |
26 weeks for women with less than two surviving children; 12 weeks for women with two or more surviving children; 12 weeks for adoptive and commissioning mothers | Maintains the same duration provisions as the Act: 26 weeks for women with less than two surviving children; 12 weeks for women with two or more surviving children; 12 weeks for adoptive and commissioning mothers |
|
Calculation of Benefit |
Payment at the rate of average daily wage for the period of actual absence. Average daily wage calculated based on wages for days worked during three months preceding leave | Retains the same payment calculation method as the Act. Specifies that the average daily wage is subject to the minimum rate of wage fixed or revised under the SS Code on Wages, 2019 |
|
Additional Leave |
6 weeks for miscarriage or medical termination; 2 weeks following tubectomy; Leave for illness arising from pregnancy or related conditions | Maintains the same leave provisions for miscarriage, medical termination, tubectomy, and pregnancy-related illness |
|
Nursing & Crèche |
Nursing breaks until child reaches 15 months; Crèche facilities in establishments with ≥50 employees; Four visits to crèche per day | Retains nursing breaks until child reaches 15 months; Maintains crèche requirement for establishments with ≥50 employees, with flexibility for central government to prescribe different threshold; Continues to allow four crèche visits per day |
|
Work-from-Home |
Provision allowing employers to permit work-from-home after maternity leave, if nature of work allows | Similar work-from-home provisions incorporated into the SS Code |
|
Job Protection |
Prohibits dismissal or discharge of a woman during maternity leave | Maintains the same protection against dismissal during maternity leave |
|
Administration |
Competent government to appoint inspectors | Introduces a new authority, the Inspector-cum-Facilitator, replacing the role of inspectors under the MB Act |
|
Medical Bonus |
Rs. 1,000 | Increased to Rs. 3,500 |
B. Key Impact on Employers:
- Identity Verification Requirement – The SS Code introduces a new requirement under Section 142 for women to declare their identity through Aadhaar number to access maternity benefits. Employers will need to facilitate this verification process.
- Nominee Designation – The SS Code requires designation of a nominee to receive maternity benefits in case of the woman's death, adding a new administrative step for employers.
- Extended Coverage – With maternity benefits now extended to unorganized workers, gig workers, and platform workers, companies engaging such workers may face increased obligations.
- Stricter Penalties – The SS Code introduces more severe penalties for non-compliance. Employers who fail to provide maternity benefits may face imprisonment up to six months or fines up to fifty thousand rupees, or both. Failure to provide contributions can result in imprisonment up to three years and fines up to one lakh rupees for first offenses, with increased penalties for subsequent offenses.
- New Grievance Mechanism – The SS Code establishes a complaint system through the Inspector-cum-Facilitator, with provisions for appeal, creating a more structured resolution process that employers must navigate.
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