NEW DELHI: The Narendra Modi-led NDA government is looking to enhance maternity leave for working women
from three months to six months, virtually double bonus payments to
employees and make gratuity portable between jobs. These proposed
changes in employment laws could buttress the Modi government's
credentials with the working class while it attempts to push through
more ambitious reforms in labour rules that are blamed for hampering
investment and job creation in the country
"The changes in the Payment of Bonus Act would raise the salary limit for getting a bonus from Rs 10,000 per month to Rs 19,000, and are at an advanced stage with a draft Cabinet note being moved earlier this month for comments from ministries," said a senior labour ministry official. Separately, the government is initiating stakeholder consultations to amend the Maternity Benefits Act of 1961 and the Payment of Gratuity Act of 1972, the official added.
Currently, companies are legally required to grant 12 weeks of maternity leave to employees though several leading employers offer additional time off and other benefits. For instance, Accenture offers five months off to new mothers while Flipkart offers 24 weeks paid leave. Citibank also offers a creche allowance to new mothers, as do some other multinational firms and investment banks.
"The ministry of women and child development has been pursuing this with us extensively as it is primarily responsible for women's welfare, so we are framing a proposal to kick off talks with employers and trade unions on enhancing the maternity leave to 24 weeks," the official said. One option being considered is to limit the enhanced maternity leave to two children and an employee having a third child would be granted 12 weeks off, in line with the present norm.
"The changes in the Payment of Bonus Act would raise the salary limit for getting a bonus from Rs 10,000 per month to Rs 19,000, and are at an advanced stage with a draft Cabinet note being moved earlier this month for comments from ministries," said a senior labour ministry official. Separately, the government is initiating stakeholder consultations to amend the Maternity Benefits Act of 1961 and the Payment of Gratuity Act of 1972, the official added.
Currently, companies are legally required to grant 12 weeks of maternity leave to employees though several leading employers offer additional time off and other benefits. For instance, Accenture offers five months off to new mothers while Flipkart offers 24 weeks paid leave. Citibank also offers a creche allowance to new mothers, as do some other multinational firms and investment banks.
"The ministry of women and child development has been pursuing this with us extensively as it is primarily responsible for women's welfare, so we are framing a proposal to kick off talks with employers and trade unions on enhancing the maternity leave to 24 weeks," the official said. One option being considered is to limit the enhanced maternity leave to two children and an employee having a third child would be granted 12 weeks off, in line with the present norm.
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