Starting a family is a big step, and if you're working, you need to understand your rights during this time. In India, the Maternity Benefit Act 1961 plays a crucial role in ensuring financial and job security for women during maternity. Whether you’re expecting or planning for the future, knowing the rules under this act can help you make informed decisions.

In this blog, we will break down what the Maternity Benefit Act is all about, its key provisions, features and penalties. We will also touch upon how having a group health insurance policy can complement your maternity benefits.

What is the maternity benefit act 1961?

The Maternity Benefit Act 1961 is a law that protects the employment of women during their maternity period. It ensures that women receive paid leave and other benefits while they take time off for childbirth, pregnancy related illness and childcare.

The law was introduced to provide a balance between career and family life. It covers women working in factories, mines, plantations, shops and other establishments with 10 or more employees.

This Act was later amended to extend maternity leave from 12 weeks to 26 weeks, helping women better manage both work and motherhood.

Provisions of Maternity Benefit Act of 1961

Let’s take a closer look at what the Act provides. These are the rules that help support women before and after childbirth:

• Maternity leave: Women are entitled to up to 26 weeks of paid maternity leave for their first two children. For the third child onward, the leave is limited to 12 weeks.
• Work from home option: After maternity leave ends, women may request to work from home, depending on the nature of their work.
• Crèche facility: Establishments with 50 or more employees must provide crèche facilities. Women can visit the crèche up to four times during the day.
• Adoptive and commissioning mothers: Women who adopt a child below the age of three months or become mothers through surrogacy are entitled to 12 weeks of leave.
• Medical bonus: A medical bonus of ₹3,500 (or more, as prescribed) is provided if the employer does not offer free medical care.

These provisions make it easier for women to focus on their health and family during and after pregnancy.

Features of Maternity Benefit Act of 1961

Here are some key features of the Maternity Benefit Act that you should know:

• Eligibility: A woman must have worked for at least 80 days in the past 12 months in the organisation to qualify for maternity benefits.
• Wages during leave: Women receive full wages during their maternity leave. These are paid at the rate of the average daily wage earned over the three months just before the leave.
• Prohibition of dismissal: Employers cannot dismiss a woman during maternity leave. Any such dismissal is illegal.
• Notice requirement: To claim maternity benefits, women must inform their employer in writing about their leave and expected date of delivery.

Understanding these features ensures that you receive all the benefits you’re entitled to without any hassle.

Penalties under the Maternity Benefit Act, 1961

If an employer violates the provisions of the Act, there are strict penalties involved:

• Non-payment of maternity benefits: If an employer fails to pay maternity benefits, they can be fined up to ₹5,000 or imprisoned for up to one year, or both.
• Wrongful dismissal: If a woman is dismissed during her maternity leave, the employer can face legal action, including imprisonment and fines.
• Failure to provide facilities: Not providing crèche facilities or refusing maternity leave can also lead to legal action.

These penalties are in place to ensure employers take the law seriously and provide a safe, supportive environment for working women.

Group health insurance and maternity coverage

While the Maternity Benefit Act 1961 covers your legal rights during pregnancy, it is equally important to have a financial safety net in place. This is where group health insurance becomes a valuable addition to your maternity journey.

Group health insurance is an insurance policy usually offered by employers that provides health coverage to employees and sometimes their family members. One of the key benefits of this type of policy is that it may include maternity coverage covering hospitalisation costs, delivery expenses and even newborn care. This means you won’t have to worry about hefty medical bills during a time when your focus should be on your health and your baby.

Having such a policy in place not only supports your physical well-being but also offers peace of mind.

Conclusion

The Maternity Benefit Act 1961 is an important step towards supporting working women in India. It provides financial security, job protection and a healthier work-life balance during one of the most crucial phases of life.

By understanding the maternity benefit rules, you can plan your maternity journey with more confidence. Combine these legal benefits with a robust group health insurance policy to make the most of your rights and ensure a smooth transition into motherhood.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.