Maternity Leave Incentive Scheme

Maternity Leave Incentive yojana|Maternity Leave Incentive Scheme|Maternity Leave Incentive Scheme Central Govt|

The private sector, to implement the extended 26-week maternity leave law, the Labour Ministry plans to refund them for seven weeks’ worth of wages for women workers with a wage ceiling up to ₹ 15,000 per month. the Centre amended the Maternity Benefit Act to increase paid maternity leave from 12 to 26 weeks for all women employees in establishments employing ten or more people.

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.

Maternity Leave Incentive yojana

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.

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.

Proposal for an Incentive Scheme

1. The Ministry is working on an incentive scheme wherein 7 weeks’ wages would be reimbursed to employers.
2. It would be applicable 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.
3. It is estimated that approximately an amount of Rs. 400 crores would be the financial implication for the for implementing the proposed incentive scheme.

 

1. The proposed Scheme, if approved and implemented shall ensure the women an equal access to employment and other approved benefits along with adequate safety and secure environment.
2. Also, the women shall continue to bear the major share of household work as well as child care.
3. The work places will be more and more responsive to the family needs of the working women.

 

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