Maternity Leave Incentive Scheme, 2018

Maternity Leave Incentive Scheme, 2018

Global Policy Regarding Maternity Leaves:

Many NRI women in foreign countries are enjoying the benefits of maternity. The natives and NRI career law to deliver maternity benefits in the nations, like Australia and Canada, is sponsored by public funds. If you talk about the UK and Singapore, this sponsorship is borne by the employer and the governments. There are countries like South Africa wherein the employer, employees and the government contribute together to sponsor this law.

Likewise, India is working in the same direction. It’s going to show a silver lining to the women employees by awarding paid maternity leaves.

Amendment in Maternity Benefit Act, 1961:

Do you know a woman will have a right to apply for 26 weeks long maternity leaves?

The Indian government has stretched the duration of these leaves. It’s an outcome of the editing in the Maternity Benefit Act, 1961. However, this amendment was announced in 2017. Before that year, this duration was only 12 weeks long for a woman employee. It’s noteworthy that this Act would be valid for the first two kids.

Aim of Amendment:

This amendment aimed at the health of the women employees, pursuant to giving birth. Also, it will provide a great aide to the infant who necessarily needs maternal care. Predominantly, the mother can ensure safety of her child. That vacation could provide her with unprecedented help. All in all, it’s a positive step in the direction of women’s development in the private sector.

But simultaneously, it’s a big challenge to execute this amended Act adequately and efficiently. The aware private sector employers have started terminating the women employees on an insubstantial ground. They don’t want to sponsor them for such a long duration by awarding paid leaves.

The gender discrimination is already on the surge in the employment sector. A report of the World Bank has pushed the alarm by revealing the comparative employment statistics. It apparently shows a clean sliding in the count of female employees. In 1990, 35 percent women were working. By the end of 2017, the percentage dropped to 27 percent.

This survey report indicates that it’s a discouragement for the women employees in the private sector.

Reimbursement Facility:  

The ministry tabled the Ministry Leave Incentive Scheme on 16 November, 2018. What proposition it came with is a provision of reimbursing seven weeks’ wages to the women employees with a ceiling up to INR 15,000/month or $209 approximately.

This provision would help the government to uproot gender-discrimination. A sudden rise in the termination of the women employees in the private sector is causing a massive rift. It puts a question mark on their credibility.

However, the existing and the latest government jobs bring happiness to the women employees. They would be able to maximize the benefits of the provisions under this law. Also, the employer needs not bear alone the responsibility of ensuring wellness and safety of his female staff.

How does the government fund this scheme?

The implementation of this scheme has two stakeholders, i.e. the government and the society. To fund it, the government has perceived its overall cost, which is likely to be nearly INR 400 Crore or $56 million.

Rather than funding it through the Labour Welfare Cess, it has proposed to draw its fund through taxes received. It’s so because the cess collection is nil in the government treasure.

Downsides of Amended Maternity Incentive Scheme:

The scheme definitely is a positive stand. Yet, some gaps trouble the implementation of this scheme.

  1. The beneficiary would those women whose salary goes up to INR 15,000/ month. It would certainly a bone of contention for the female employees who receive a lesser amount. They can’t be able to fight with the inflation.
  2. Proper monitoring of the effective implementation of this scheme is a challenge. A comprehensive plan of action is needed.
  3. The obligations to be abided by the employers are not drafted yet. The government is thinking to make it obligatory for employers to contribute through provident funds and employee’s state insurance etc..

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