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New Rules for Maternity Benefit & Employee Welfare Schemes

New Rules for Maternity Benefit & Employee Welfare Schemes

Introduction

The law governing maternity benefits reflects how society perceives work, care and gender equality. Over the years, India’s maternity benefit framework has changed. From narrow, factory-oriented welfare laws to a comprehensive social security regime that recognises modern workplaces and various forms of motherhood. On 21 November, 2025, this development reached a decisive stage with the full implementation of the Code on Social Security, 2020. It consolidated maternity benefits while retaining some of the beneficial features incorporated through earlier reforms.

Legislative Evolution

When the Maternity Benefit Act, 1961 was enacted, it was limited to the regulation of women employed fora short period before and after childbirth and to ensure that pregnancy did not result in immediate income loss. Earlier, the law allowed only 12 weeks of maternity leave and restricted maternity benefits largely to women in the formal and organised sector.

This paradigm has stood the test of time despite the radical change in the role of women in the labour market. By the beginning of the 21st century, it was very clear that the current legislation was not addressing the modern workplace relationship, such as the use of contracts, the service-oriented economy and the rising economic participation of women.

The Maternity Benefit (Amendment) Act, 2017, was one of the first significant changes. It increased the period for maternity leave, creche servicesweres introduced, work from home provisions were incorporated,d and it even acknowledged commissioning mothers and adoptive mothers. These reforms were reiterated in the Code on Social Security, 2020, which has consolidated them into a unified social security framework with the foundation to further develop coverage in the future.

Duration of Maternity Leave: A Structural Shift

The most basic yet reformative change is the extension of maternity leave from 12 weeks to 26 weeks for biological mothers for their first two children, which is more than double compared to the original 1961 framework. This extension has been retained under the code on social security, 202,0 with leaves of up to eight weeksthat can be taken before the due delivery date, which gives them flexibility that was lacking under the original act.

This reform is not just symbolic; it brought the legislation to the level of international standards. Medical records show that a six to eight week recovery period is needed after childbirth, whereas the world health agencies suggested that children should be fed solely on breast milk in the first six months. The long leave gives women athe ppropriate time to recover, due care required for the children and resume work without facing major financial pressure.

 Eligibility Criteria: Qualifying period & Modern Employment 

A critical reform has been the qualifying period of maternity benefits, which has been reduced. The 1961 Act required a woman to have at least 160 days of work in the last 12 months. The Amendment in 2017 had reduced this to 80 days, and it is still retained under the Code on Social Security, 2020.

New rules for maternity benefits… This change reflects contemporary workforce inclusion:

  • Short-term/temporary contracts and project-based work are now common

  • Employment mobility across employers and states has increased

  • Part-time and rotational work are now widespread, especially inthe service sector.

The code also introduces the concept of portability, which allows the employment days across different employers to be counted in the relevant period. This ensures that women do not miss out on benefits due to reasons like switching jobs shortly before the pregnancy period.

Inclusivity in Motherhood: Recognition of Non-Biological Mothers

The recognition of non-biological mothers is perhaps the most liberal step towards motherhood, recognising that caregiving, emotional bonding and parental responsibility are not just restricted to biological childbirth. 

The Maternity Benefit Act, 1961, only recognised natural birth or pregnancy, which excluded adoption and surrogacy. Under the 2017 amendment, this position change,d and 12 weeks of maternity leave were given to:

  • Adoptive mothers who take a child below the age of 3 months under legal custody

  • Commissioning mothers under gestational surrogacy.

The code on social security, 2020, retained these entitlements without any modifications. Also, a Supreme Court clarification in May 2025 established that the 12-week entitlements for adoptive and commissioning mothers are not subject to the number of children in the caselaw K. Umadevi v. Government of Tamil Nadu (2025 INSC 781). These reforms show India’s commitment towards being inclusive and forward-looking.

Nursing Breaks & Post-Delivery Support

The right to nursing breaks is not new; it has been in existence since 1961. However, its scope and clarity have expanded considerably over time. Under the current framework:

  • A woman can receive 2 paid nursing breaks a day as soon as she resumes work after giving birth. 

  • These breaks continue until the child reaches the age of 15 months.

  • Breaks cannot be refused, postponed or deducted based on performance, etc.

In the Code on Social Security, 2020, it is clear that such breaks are paid at normal wage rates and allow them to be flexible intheirs implementation, as both employer and employee agree. Also, the work-from-home option, which was introduced in 2017, is still present where the nature of the work allows it, providing a valuable transitional option to new mothers.

Healthcare Support through Medical Bonus 

In a case where employers do not offer free prenatal and postnatal health services, women are entitled to receive a medical bonus. The amount, which used to be quite negligible at ?25 under the original act, was increased to ?3,500 in 2017 and retained under the current regime.

Though the automatic process of inflation indexation is not prescribed by the code, it allows the government to increase or decrease the amount by notification, highlighting the fact that the costs associated with maternity-related healthcare cannot be treated as static.

Crèche Facilities: Incorporating Childcare

The Mandatory crèche facilities introduced in the establishments having 50 or more employees were one of the major policy changes in 2017. This obligation is consolidated and clarified under the Code on Social Security, 2020.

Employers who meet the threshold have to mandatorily provide a crèche facility. It should be within the prescribed distance of generally 500 meters and can be either individual or shared/common facilities. With trained caregivers, safety standards, nutritious meals and other activities.

Women are entitled to 4 visits to the crèche per day, which also includes rest intervals. The implementation of new code allows digital attendance tracking and compliance monitoring, reflecting India’s step towards digitalisation.

Job Protection & Anti-Discrimination Framework

Even in 1961, protection against dismissal during maternity leave existed, but the enforcement framework has become significantly stronger. The Code on Social Security, 2020, introduces an explicit presumption that all adverse action performed in a reasonable time before or after maternity leave is assumed to be related to maternity unless the employer can prove otherwise. This shows protection not only on paper but also protection that is actually enforced.

Remedies which are now available include:

  • Reinstatement

  • Full back wages with interest

  • Compensation for mental harassment

  • Damages for loss of career opportunities

  • Legal costs where the woman succeeds.

Penalties & Enforcement

The penalty regime under the Code on Social Security is much stricter than it was in the 1961 Act. Any employer who does not offer maternity benefits is liable to an imprisonment of up to 6 months or a fine of up to ?50,000, with even more severe punishment for repeated offences, including imprisonment of up to 3 years and a fine of up to ?3,00,000. This increase depicts a clear intent to treat maternity rights as enforceable legal entitlements and not just discretionary welfare measures.

Conclusion

Over time, maternity benefits in India have moved beyond a welfare measure and are now treated as a matter of legal right and social security. The shift of a 160-day eligibility standard to an 80-day system, the recognition of adoptive and commissioning mothers, extended nursing support, mandatory childcare infrastructure and other reforms together reflect a pragmatic approach towards balance between motherhood and work.

Under the Code on Social Security, 2020, maternity benefit is now recognised as a necessary investment in human capital, gender equality and long-term workforce stability. Though various challenges exist, particularly in extending coverage to the informal sector, the present structure is a massive and commendable step towards protecting working mothers.

Author:

YOSHITA SHARMA
Indore, Madhya Pradesh
NMIMS, Indore BBA LL.B. (Hons.), Final Year


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