Maternity, Gratuity & Wages Acts
Labour Laws · प्रसूति, ग्रेच्युटी और मजदूरी अधिनियम
📋Quick Overview
Several landmark labour laws protect workers' wages, maternity rights, and retirement benefits in India. The Maternity Benefit Act 1961 (amended 2017) guarantees paid leave for childbirth. The Payment of Gratuity Act 1972 ensures a retirement lump sum for long-serving employees. The Minimum Wages Act 1948 sets the floor below which no worker should be paid. The Payment of Wages Act 1936 ensures timely and full wage payment. Equal Remuneration Act 1976 mandates equal pay for equal work regardless of gender. All these have now been merged into the four Labour Codes (primarily Code on Wages).
Maternity leave amendment 2017: Maternity leave was doubled from 12 weeks to 26 weeks for first 2 children. This made India 3rd in the world (after Canada and Norway) for maternity leave duration.
📖Five Key Acts — Comparison
| Act | Year | Key Benefit | Applicability |
|---|---|---|---|
| Maternity Benefit Act (amended 2017) | 1961/2017 | 26 weeks paid leave (1st-2nd child); 12 weeks (3rd+); crèche mandatory for 50+ employees | Establishments with 10+ employees |
| Payment of Gratuity Act | 1972 | 15 days wages per completed year; max ₹20 lakh | Establishments with 10+ employees + 5 years service |
| Minimum Wages Act | 1948 | Govt fixes minimum wage; floor wage concept in new code | All scheduled employments |
| Payment of Wages Act | 1936 | Wages by 7th of next month (small), 10th (large); max deductions = 50% | All employees earning ≤₹24,000/month |
| Equal Remuneration Act | 1976 | Equal pay for equal work for men and women; no discrimination in recruitment | All establishments |
📝Gratuity Calculation & Maternity Details
- •Gratuity formula: (Last drawn wages × 15 × years of service) ÷ 26
- •Gratuity payable: On retirement, resignation after 5 years, death, or disablement; waived for death/disability
- •Maternity leave for adoption: 12 weeks from day of adoption (child below 3 months)
- •Maternity benefit for surrogacy: 12 weeks for commissioning mother (surrogate)
- •Work from home after maternity leave: Woman can request flexible working arrangement from employer
- •Payment of Wages Act: Wages must be in legal tender (cash/cheque/bank); deductions limited; fines not exceeding 3% of wages
- •Minimum Wages Act: Different wages for different scheduled employments; Central and State both fix minimum wages in their respective domains