Maternity Benefit Act — 26 Weeks Paid Leave & ICC Coordination
Quick Summary
Under the Maternity Benefit (Amendment) Act, 2017, every Indian employer with 10 or more employees must provide 26 weeks of paid maternity leave to eligible women employees. This article covers eligibility, payment, crèche obligations, and how Founding Legals automates leave tracking.
The Legal Breakdown / Why It Matters
Maternity Benefit Act, 1961 (amended in 2017): Provides for paid maternity leave, medical bonus, work-from-home options, crèche facility, and protection from dismissal during maternity.
Eligibility Criteria
| Requirement | Threshold | Applicability |
|---|---|---|
| Employer Size | 10+ employees | Any office or workplace in India |
| Employee Service | Worked 80+ days | In the 12 months preceding expected delivery |
| Number of Children | 26 weeks | For first 2 children (12 weeks from third child onwards) |
| Adoptive/Surrogacy Mother | 12 weeks | From date of handing over child (child must be <3 months old) |
Payment & Other Benefits
| Benefit | Detail |
|---|---|
| Maternity Pay | Full daily wages × 26 weeks (average of last 3 months) |
| Medical Bonus | ₹3,500 (if no employer-paid pre-natal facility) |
| Pre-natal Leave | Up to 8 weeks before delivery |
| Nursing Breaks | 2 × 15-min breaks daily until child is 15 months old |
| Crèche Facility | Mandatory if 50+ employees; 4 visits/day allowed |
| Work-from-Home | Permitted post-26 weeks, by mutual agreement |
Protection from Dismissal
Under Section 12 of the Act, dismissal of a woman during her maternity period or due to her pregnancy is illegal. Any termination notice given during maternity is void. Penalty: imprisonment 3 months to 1 year + fine up to ₹5,000.
How to Do It on Founding Legals
- Step 1: Go to Team → Policies → Maternity Policy. Generate a Maternity Benefit Policy customised to headcount, working hours, etc.
- Step 2: When an eligible employee notifies pregnancy, go to Payroll → Leave → Maternity Leave. Enter expected delivery date — the platform calculates the 26-week paid leave window.
- Step 3: The platform auto-continues full salary payment through the 26 weeks (showing it as "Maternity Pay" on payslips) including all TDS and EPF deductions.
- Step 4: Generate return-to-work documentation including nursing breaks, work-from-home eligibility, and a post-leave check-in workflow.
- Step 5: If headcount crosses 50, the platform prompts you to set up a Crèche Policy (in-house or tied-up) and adds the cost provision to monthly forecasts.
Many founders mistakenly think maternity benefits apply only to permanent employees. The law applies to any woman who has worked 80+ days in the preceding 12 months — including contract employees and probationers. Denying benefits citing "probation" or "contract" is a violation under Section 21 with personal liability on the employer.
The cost of 26 weeks of paid maternity leave is typically lower than the cost of replacing a senior employee. Indian startups with progressive maternity policies (extended pay, return-to-work coaching, flexible hours post-return) report 70%+ retention rates of women employees vs. the industry average of 40%. Make it a retention asset, not a compliance burden.