Hi friends,
Now that the new Maternity Benefit Act has been passed, which mandates 26 weeks of maternity leave, it poses a challenge for organizations when it comes to employees covered under ESI. Providing 26 weeks of salary along with leave for staff earning higher salaries can potentially create financial strain for any organization.
In the absence of a staff member, a new hire must be brought in or additional responsibilities must be allocated to existing employees. In such scenarios, the question arises: should the staff member be paid their basic pay or the ESI eligibility pay for 6 months, or does the company need to provide the full salary with all perks and allowances?
Can someone shed light on this situation, please? I'm sure many of our friends are also eager to understand this better.
~ Srinaren
From India, Bangalore
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17Now that the new Maternity Benefit Act has been passed, which mandates 26 weeks of maternity leave, it poses a challenge for organizations when it comes to employees covered under ESI. Providing 26 weeks of salary along with leave for staff earning higher salaries can potentially create financial strain for any organization.
In the absence of a staff member, a new hire must be brought in or additional responsibilities must be allocated to existing employees. In such scenarios, the question arises: should the staff member be paid their basic pay or the ESI eligibility pay for 6 months, or does the company need to provide the full salary with all perks and allowances?
Can someone shed light on this situation, please? I'm sure many of our friends are also eager to understand this better.
~ Srinaren
From India, Bangalore
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Creche under Maternity Benefit Act.pdf
MATERNITY BENEFIT ACT 2009.doc