Currently, we are processing variable pay for all the employees for the year 2017. My confusion is, one employee who had availed maternity benefits for 6 months will also be considered for 12 months of variable pay or only for 6 months. Please help me.
From India, Bengaluru
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From India, Bengaluru
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Dear Mokshith,
Please go through sec. 5(1) of the MB Act, 1961 relating to the payment of maternity benefit during the woman employee's actual absence on account of maternity and the method of its calculation. If you analyze subsection (1) of Sec. 5 together with the explanation given thereof, you will understand exactly (1) what the maternity benefit prescribed is and (2) how it is to be calculated.
(1) It is the payment for the entire period of absence on account of maternity subject to a maximum of 26 weeks.
(2) It should be calculated at the rate of the average daily wages payable to her for the days on which she has worked during the period of 3 calendar months immediately preceding the date of her such absence. Therefore, it implies that not merely the actual paid to her during the 3 months alone to be taken, but payable should also be taken into account for quantifying the benefit. In other words, if the rate of wages due for the preceding 3 months was revised subsequently with retrospective effect, the calculation of maternity benefit should cover such revision as well.
(3) Now, coming to your question which is whether the employer has to pay the benefit of prospective revision during the period of absence. In my opinion, it is not necessary for the calculation is based on the earnings of the preceding 3 months only. From the day she rejoins duty after the maternity leave, her salary should be restored to the revised scale with prospective effect only.
From India, Salem
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6185Please go through sec. 5(1) of the MB Act, 1961 relating to the payment of maternity benefit during the woman employee's actual absence on account of maternity and the method of its calculation. If you analyze subsection (1) of Sec. 5 together with the explanation given thereof, you will understand exactly (1) what the maternity benefit prescribed is and (2) how it is to be calculated.
(1) It is the payment for the entire period of absence on account of maternity subject to a maximum of 26 weeks.
(2) It should be calculated at the rate of the average daily wages payable to her for the days on which she has worked during the period of 3 calendar months immediately preceding the date of her such absence. Therefore, it implies that not merely the actual paid to her during the 3 months alone to be taken, but payable should also be taken into account for quantifying the benefit. In other words, if the rate of wages due for the preceding 3 months was revised subsequently with retrospective effect, the calculation of maternity benefit should cover such revision as well.
(3) Now, coming to your question which is whether the employer has to pay the benefit of prospective revision during the period of absence. In my opinion, it is not necessary for the calculation is based on the earnings of the preceding 3 months only. From the day she rejoins duty after the maternity leave, her salary should be restored to the revised scale with prospective effect only.
From India, Salem
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While calculating variable pay for 2017 you need to pay only for the period the employee has worked, maternity leave does not entitle a woman employee for further benefit like variable pay on it.
From India, Mumbai
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From India, Mumbai
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Employee on your roll are eligible for 'Variable Pay' . If the reason of absence have got sanctitity under law.
From India, Mumbai
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From India, Mumbai
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Dear Friend,
Regarding maternity leave, a female employee does not become disqualified for any benefits provided by the company to its employees. If variable pay is explicitly tied to performance and deliverables, then she will be entitled to the period she has worked.
Warm Regards,
Bharat Gera
HR Consultant
9322404765
From India, Thane
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Regarding maternity leave, a female employee does not become disqualified for any benefits provided by the company to its employees. If variable pay is explicitly tied to performance and deliverables, then she will be entitled to the period she has worked.
Warm Regards,
Bharat Gera
HR Consultant
9322404765
From India, Thane
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In case the variable pay is paid based on performance, then she is not eligible. However, if it is fixed and considered a part and parcel of various reasons, such as variable pay, then you are required to pay that amount even though she is on maternity leave.
Regards,
Kameswararao
From India, Hyderabad
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Regards,
Kameswararao
From India, Hyderabad
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