Maternity Leave

Maternity leave is paid leave given to a woman employee before and after the birth of her child, so she can recover from childbirth and care for her baby without losing her job or income.

Maternity leave protects both the health of the mother and her place at work. During this period, the employee does not work but still receives her wages, calculated on her average daily wage. Her job is kept for her, and the employer cannot dismiss her because of the pregnancy or the leave.

In India, maternity leave was earlier governed by the Maternity Benefit Act, 1961. With the Labour Codes now in force, these rules are part of the Code on Social Security, 2020. The core benefits, such as 26 weeks of paid leave, have stayed largely the same.

For HR teams, maternity leave is more than a leave type. It affects payroll, attendance, statutory compliance and workforce planning, so it needs a clear policy and accurate records.

A woman employee is eligible for paid maternity leave if she has worked for the employer for at least 80 days in the 12 months before her expected date of delivery.

The main conditions are:

• 80 days of work: The employee must have actually worked at least 80 days in the 12 months before the expected delivery date. Days of lay-off and paid holidays count towards this.
• Covered establishment: The rules apply to factories, mines, plantations, shops and establishments with 10 or more employees, and other notified establishments.
• All types of employees: Permanent, contract, temporary and probation employees are covered if they meet the 80-day rule.

Employees covered under ESI (wages up to ₹21,000 a month) usually receive maternity benefit from ESIC instead of the employer, subject to ESI contribution conditions. HR should check which route applies to each employee.

Indian law allows up to 26 weeks of paid maternity leave for the first two children and 12 weeks from the third child onwards.

The employee can choose when to start her leave, within the pre-delivery limit. The rest of the leave is taken after the child is born. Employers may offer more than the legal minimum through company policy, but never less.

During maternity leave, the employee is paid at the rate of her average daily wage for the full period of leave.

The average daily wage is worked out from the wages paid for the days the employee actually worked in the three calendar months before her leave starts.

Example: If an employee earned ₹54,000 for 90 working days in the last three months, her average daily wage is ₹600. For 26 weeks (182 days), her maternity benefit would be ₹600 × 182 = ₹1,09,200.

• Medical bonus: If the employer does not provide free pre-natal and post-natal care, the employee is entitled to a medical bonus. This has been ₹3,500; HR should confirm the current amount notified under the Code on Social Security.
• No deduction: The employer cannot cut the benefit for the leave period.

Besides regular maternity leave, the law gives paid leave for related medical events such as miscarriage, tubectomy and illness arising from pregnancy.

The employee usually needs to give medical proof for these leaves. HR should record them as separate leave types so that balances and payroll stay accurate.

Employers must grant maternity leave, pay the benefit on time, protect the employee's job and provide workplace support such as crèche facilities where required.

• No dismissal: An employer cannot dismiss or discharge a woman during her maternity leave, or change her service conditions to her disadvantage.
• Crèche facility: Establishments with 50 or more employees must provide a crèche, and the mother can visit it during the day.
• Work from home: Where the nature of work allows, the employer and employee may agree on work from home after the leave ends.
• Nursing breaks: A returning mother is allowed nursing breaks until the child reaches 15 months.
• Inform employees: Employers must inform women employees about maternity benefits in writing at the time of joining.

Breaking these rules can lead to penalties under the Labour Codes, so documentation is important.

A clear maternity leave policy, accurate leave records and automated payroll help HR teams stay compliant and support employees.

Practical steps for HR teams:

1. Write a maternity leave policy that covers eligibility, duration, pay and the notice process.
2. Collect the employee's notice and medical documents, and confirm the 80-day eligibility.
3. Check whether the employee is covered under ESI or paid by the employer.
4. Calculate the average daily wage and medical bonus correctly.
5. Plan work handover and keep in touch with the employee as she prefers.
6. Plan the return to work, including crèche access and flexible options.

Using HR and payroll software like QkrHR makes this easier. It can track maternity leave balances, calculate pay for the leave period and keep compliance records in one place.