Govt. plans to incentivise employers paying 7 week maternity leave salary
The labour ministry proposes to reimburse employers the salaries paid for seven of the additional 14 weeks of maternity leave for female employees in the Rs 15,000 salary bracket who have been EPFO subscribers for 12 months.
The policy will start on a pilot basis in New Delhi and Maharashtra and scaled up across India later. Much on the lines of Pradhan Mantri Rojgar Protsahan Yojana, the labour ministry now plans to give fiscal incentives to employers to retain female workers availing 26 weeks of maternity leave.
The plan is for employers to bear half the salary payable for the additional 14 weeks of leave provided under the amended Maternity Benefit (Amendment) Act, 2017, effective since April 1, 2017. According to the official, there have been several representations before the labour ministry on how the extended maternity leave has become a deterrent for female employees who are asked to quit or are retrenched on flimsy grounds before they go on maternity leave. Source:ET