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What is the Maternity Benefits Act (MB Act)?

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1 minutes

The Maternity Benefits Act (MB Act) is an Indian law that provides paid maternity leave and other benefits to women employees during pregnancy and after childbirth, ensuring their health and well-being while protecting their employment rights.

Who is covered by the Maternity Benefits Act (MB Act)?

The Maternity Benefits Act (MB Act), passed by Parliament in 1961, applies to all establishments, including factories, mines, plantations, and shops, where the employment of women is regulated by the Indian government, where at least 10 people have been employed on at least one day in the preceding 12 months, and all commercial establishments covered by the Delhi Shops and Establishments Act, 1954. One of the provisions of the Act also states that the State government can declare additional establishments or classes of establishments to be subject to the Act at any time, without needing approval from the Central government.

The MB Act helps ensure that working women employed all across India receive maternity benefits they are entitled to, during and after pregnancy, regardless of their nature of work. Eligibility under the Act includes women who have worked for at least 80 days in the 12 months preceding the expected date of delivery.

Who is not covered by the Maternity Benefits Act (MB Act)?

Women covered under the Employees State Insurance Act (ESI Act) are not eligible for benefits under the Maternity Benefits Act, because they are already provided maternity benefits through the ESI scheme. The MB Act also notes that the appropriate Government has the power to exempt certain establishments from some of the provisions of the Act.

Main provisions of the Maternity Benefits Act (MB Act)

The main provisions of this Act include:

  • Rules about when pregnant women can and can’t work
  • Women’s right to payment of maternity benefits
  • Payment of medical bonus
  • Number of weeks of maternity leave and paid leave for other circumstances, such as miscarriage, premature birth, or medical termination of pregnancy
  • Nursing breaks
  • Rules about terminating women during pregnancy and maternity leave
  • Rules about reducing wages for women during pregnancy and maternity leave
  • Forfeiture of maternity benefits

Benefits covered by the Maternity Benefits Act (MB Act)

Section 5, sub-section 1 of the MB Act defines “benefit” as the payment a commissioning mother receives, at the average daily wage base set by law, for the period of her absence from work—the leave period beginning immediately preceding the day of her delivery and any period following that day until she returns to work. The maximum period of leave is eight weeks before giving birth, plus 26 weeks after giving birth.

The Act also covers a number of other benefits:

  • 12 weeks of paid leave for adopting mothers when they legally adopt a child under three months old
  • One month of paid leave in the case of miscarriage, premature birth, or medical termination
  • 1,000 rupees medical bonus for women who give birth without any complications, and higher bonuses for births with medical complications
  • Two nursing breaks per working shift for working mothers after returning from maternity leave
  • In the case of death of a woman during her maternity leave, her benefits can be transferred to a nominee in her family

Major amendments made to the Maternity Benefits Act (MB Act)

The Maternity Benefit (Amendment) Act, passed in 2017, introduced several key changes to the original Act. The amendment was approved by both the Rajya Sabha and Lok Sabha. It significantly increased the leave period from 12 weeks to 26 weeks for biological mothers and extended maternity benefits to adoptive mothers.

One major addition through this bill is the provision of creche facilities for establishments employing 50 or more employees, giving working mothers a safe place for their children while they work.

Frequently asked questions about the Maternity Benefits Act

How do maternity benefits in India compare to other nations?

India’s labour laws provide one of the most extended maternity leave periods globally, particularly after the 2017 amendment. With 26 weeks of paid leave, India offers more generous benefits compared to countries like the US, where there is no mandatory paid leave. This extensive leave period aims to support women workers during and after childbirth, aligning with international standards in labour and employment.

How did the Maternity Benefits Act impact women’s employability in India?

The government of India introduced the MB Act to provide female employees with better job security and financial stability during and after childbirth. However, the Act has had some unintended consequences—some employers now avoid hiring workers who may become pregnant so they won’t have to give them maternity leave and compensate them for that time.

Rippling and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.

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