Hello,
What is meant by average daily wages under the maternity act ?
Is the salary payable on the basic salary or gross salary. Also should we pay PF contributions for this period ?
Can anyone clarify on this ?
From India, Chennai
What is meant by average daily wages under the maternity act ?
Is the salary payable on the basic salary or gross salary. Also should we pay PF contributions for this period ?
Can anyone clarify on this ?
From India, Chennai
1. Dear member, in my opinion, the maternity benefit paid under the Maternity Benefit Act, 1961 is not wages and no EPF contributions is payable on said amount. However, you can see the definition of "wages" under EPF & MPs Act, 1952 and rules/regulations framed thereunder.
2. The term "average daily wages" has been defined under Explanation to Section 5 of the Maternity Benefit Act, 1961. The term " wages" has been defined under section 3(n) of said Act. Please refer the same. For more information kindly also see other discussion on the same subject in this cite, the online link of the same is mentioned as follows:-
https://www.citehr.com/518143-matern...nefit-pay.html
From India, Noida
9232. The term "average daily wages" has been defined under Explanation to Section 5 of the Maternity Benefit Act, 1961. The term " wages" has been defined under section 3(n) of said Act. Please refer the same. For more information kindly also see other discussion on the same subject in this cite, the online link of the same is mentioned as follows:-
https://www.citehr.com/518143-matern...nefit-pay.html
From India, Noida
During the maternity leave days a woman employee is entitled to gross pay which she was getting immediately preceding her leave days. However she is not entitled to reimbursements, if any, like telephone (since she is not on duty but is on leave and therefore she is not expected to make official calls), travelling allowance (since she is not travelling to and fro office) etc.
PF should also be deducted from the salary because it is a payment given to her while on employment just like we pay PF for the days one remains on CL or EL.
Madhu.T.K
From India, Kannur
PF should also be deducted from the salary because it is a payment given to her while on employment just like we pay PF for the days one remains on CL or EL.
Madhu.T.K
From India, Kannur
Dear Ripathjrp,
Answers to you, are as under:
According to Explanation to section 5, average daily wage means the average of the woman's wages payable to her for the days on which she has worked during the period of three calendar months immediately preceding the date from which she absents herself on account of maternity.
"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 allowances) as a woman is for the time being entitled to,
(2) incentive bonus, and
(3) the money value of the concessional supply of food grains and other articles but does not include-
(i) any bonus other than incentive bonus;
(ii) over-time 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;
Salary payable is Gross Salary. According to section 5, payment of maternity benefit at the rate of the average daily wage........ What is average daily rate is as defined in answer to Q1 above.
There is no legal clarity in this respect, according to me.
Various CPFCs during their tenure have given clear instructions that certain category of allowances including Maternity Benefit will not form part of the 'basic wages' as defined under section 2(b) of the EPF Act.
EPFO Chennai says Maternity Benefit is a part of basic wages and included in the term "wages" for the purpose of PF contribution.
I give advise to include Maternity Benefit as a part of "basic wages" for PF contribution. Maternity Benefit is paid for the leave during maternity and therefore it is a kind of paid leave on which PF which PF attracts.
From India, Mumbai
Answers to you, are as under:
According to Explanation to section 5, average daily wage means the average of the woman's wages payable to her for the days on which she has worked during the period of three calendar months immediately preceding the date from which she absents herself on account of maternity.
"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 allowances) as a woman is for the time being entitled to,
(2) incentive bonus, and
(3) the money value of the concessional supply of food grains and other articles but does not include-
(i) any bonus other than incentive bonus;
(ii) over-time 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;
Salary payable is Gross Salary. According to section 5, payment of maternity benefit at the rate of the average daily wage........ What is average daily rate is as defined in answer to Q1 above.
There is no legal clarity in this respect, according to me.
Various CPFCs during their tenure have given clear instructions that certain category of allowances including Maternity Benefit will not form part of the 'basic wages' as defined under section 2(b) of the EPF Act.
EPFO Chennai says Maternity Benefit is a part of basic wages and included in the term "wages" for the purpose of PF contribution.
I give advise to include Maternity Benefit as a part of "basic wages" for PF contribution. Maternity Benefit is paid for the leave during maternity and therefore it is a kind of paid leave on which PF which PF attracts.
From India, Mumbai
Any organisation covered under ESI Act, Maternity Benefit Act is not applicable. If the organisation is covered under ESI, maternity benefits will be passed on to the women employee concerned. Please also take this into consideration along with the other experts who have enlighted their valuable views.
From India, Bangalore
From India, Bangalore
Dear B. Sreenivasulu,
Queriest questions are on Maternity Act and the responses given by members are in context with the questions asked. .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. ....................
From India, Mumbai
Queriest questions are on Maternity Act and the responses given by members are in context with the questions asked. .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. ....................
From India, Mumbai
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W B Maternity Benefit Rules, 1965.Bare Act..pdf