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hr3421401
Hi team, Please help me with 2 queries.
1. Do we have to pay full gross salary during maternity leave or we can avoid the allowances like education allowance, travel allowance & other allowance and pay only basic salary and HRA.
2. And if we have paid full gross salary in past 5 months then can we recover the allowances which are paid.
Thank you in advance.

From India, Mumbai
vmlakshminarayanan
946

Hi,
1)
For female employees who are on Maternity leave 100% salary to be paid after recovering statutory deductions like PF, PT, Income Tax etc. You cannot exclude any allowance which were part of fixed salary.

However any allowances paid apart from salary (which is not part of Gross salary) will be at the discretion of the Employer.

2) As allowances are to be paid compulsorily there is no question of recovery.

As per MB Act 100% salary to be paid. However some employer s pay 50% of the take home salary and balance being paid once the employee resume back to work after Maternity leave.

From India, Madras
hr3421401
As per laws in act mentioned-

(n) “wages” means all remuneration paid or payable in cash to a woman, if the terms
of the contract of employment, express or implied, were fulfilled and includes –
(1) such cash allowances (including dearness allowance and house rent
allowance) as a woman is for the time being entitled to;
(2) incentive bonus; and
(3) the money value of the concessional supply of foodgrains and other
articles,
but does not include –
(i) any bonus other than incentive bonus;
(ii) overtime earnings and any deduction or payment made on account of
fines;
(iii) any contribution paid or payable by the employer to any pension fund
or provident fund or for the benefit of the woman under any law for
the time being in force; and
(iv) any gratuity payable on the termination of service;

Is there any revision in act recently that we have to pay full gross salary. please help me with query.

Thanks in advance

From India, Mumbai
Pocket HRMS
8

According to the Indian Maternity Benefit Act, of 1961, employers must pay their female employees their full salary during maternity leave. This includes all allowances that are part of the employee's regular salary, such as education allowance, travel allowance, and other allowances. The only exception is if the employee is on a probationary period, in which case they are only entitled to the basic salary.

If you have already paid the full gross salary in the past 5 months, you cannot recover the allowances that have been paid. This is because the law does not allow employers to recover any payments made to employees during maternity leave.

Here are some additional things to keep in mind:

The employer must pay the maternity benefit within 15 days of the end of the maternity leave period.
The employer must also provide the employee with a medical bonus of Rs. 25.
The maternity benefit is not taxable.

I hope this helps!

From India, Dombivali
Madhu.T.K
4248

Mr Pocket HRMS

Where is it mentioned that "The only exception is if the employee is on a probationary period, in which case they are only entitled to the basic salary"?

"The employer must pay the maternity benefit within 15 days of the end of the maternity leave period." Under which law it is stated? We pay it as if the employee is on leave every month not after she resumes duty!

"The employer must also provide the employee with a medical bonus of Rs. 25." It is Rs 3500 and not Rs 25. Please scrap old bare Act.

"The maternity benefit is not taxable.". Is there any circular for this?. Maternity salary is salary only and it is taxable.

From India, Kannur
rajeev.jha620
is it also applicable to interns?
From India, Imphal
Madhu.T.K
4248

Who is an intern? An intern is a student undergoing his internship as part of curriculum. The period of internship shall be three or four months. Moreover, there exists no employee- employer relationship between an intern and the employer. As such no labour law will apply to him.

Now a days internship is used in synonyms to trainee. If the internship is not as per the curriculum as supported by the request letter from the Principal/ the head of the institution, then he will attain the status of trainee. A trainee is eligible for all statutory rights and as such if she works for 80 days in 12 months period, she would be entitled to maternity benefits as provided in the Maternity Benefits Act as if she is a regular employee. However, a trainee engaged following the Apprentice Act is not an employee and such a trainee, apprentice, will not be eligible to any benefits under the Act.

From India, Kannur
hr3421401
Thank you for clearing my doubts.
From India, Mumbai
pdteraiya
4

One side Govt is forcing Employer to pay Maternity Benefit in advance to Female employee while going on Maternity Leave. ON other side ESIC is paying Maternity Benefit to Female beneficiary post completion of Maternity Leave.
Two faces of Govt.

From India, Surat
Madhu.T.K
4248

ESIC will not wait to pay the benefits till the leave is over but will pay it periodically while the insured is on leave.
From India, Kannur
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