Maternity leave: govt. for incentive scheme

Maternity leave: govt. for incentive scheme

News:

1. In a bid to encourage employers, especially in 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.

Important Facts:

2. The funding will be done from government budget and not from any labour welfare cess as it does not exist.
3. Background:

• In March 2017, 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.
• However, the Ministry statement noted that while implementation of the provision was good in the public sector, it was poor for those with private sector or contract jobs.

4. About Maternity Benefit Act, 1961:

• The Maternity Benefit Act, 1961, applies to establishments employing 10 or more than 10 persons in factories, mines, plantation, shops & establishments and other entities.
• The main purpose of this Act is to regulate the employment of women in certain establishments for certain period before and after child birth and to provide maternity benefit and certain other benefits.
• The Act was amended through the Maternity Benefit (Amendment) Act, 2017, which, inter alia, has increased the paid maternity leave to women employees from 12 weeks to 26 weeks.

5. Reason to bring incentive scheme :

• 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.

6. About incentive scheme:

• The Ministry of Labour and Employment is working on an incentive scheme whereby the government would bear the cost of maternity leave wages for seven weeks, subject to certain conditions. The financial implication to the Centre is estimated to be ₹ 400 crore.

7. Significance:

• The scheme would ensure the women equal access to employment and other approved benefits along with adequate safety and secure environment.
• Also, the women shall continue to bear the major share of household work as well as child care.
• The workplaces will be more and more responsive to the family needs of the working women.