Maternity, Gratuity & Wages Acts
Labour Laws · प्रसूति, ग्रेच्युटी और मजदूरी अधिनियम · 18 facts
Maternity Benefit Act 1961 (amended 2017): Protects maternity rights of women employees; applies to establishments with 10+ employees.
Maternity leave 2017 amendment: First/second child — 26 weeks paid leave; third child and beyond — 12 weeks paid leave; pre-natal leave up to 8 weeks.
Adoptive/commissioning mother: 12 weeks maternity leave for women who adopt a child below 3 months; also for commissioning mothers (surrogacy).
Crèche mandatory (2017 amendment): Establishments with 50+ employees must provide crèche facility; mother entitled to 4 crèche visits per day.
Work from home option (2017 amendment): After maternity leave, employer can offer work from home option if nature of work permits; mutual agreement basis.
Maternity benefit eligibility: Woman must have worked for at least 80 days in the 12 months preceding her due date; otherwise no benefits.
Payment of Gratuity Act 1972: Provides gratuity to employees after 5 years of continuous service; formula: 15 days' last salary × years of service ÷ 26.
Gratuity maximum limit: Rs 20 lakh (government employees: no limit); amount increased from Rs 10 lakh (2010) to Rs 20 lakh (2018).
Gratuity eligibility: 5 years continuous service; but if employee dies/disabled, gratuity payable regardless of service period.
Minimum Wages Act 1948: State governments fix minimum wages for different categories of scheduled employment; central government for central sphere employments.
National Minimum Wage (Floor Wage): Rs 178/day (2023); states cannot set wages below this; meant to provide decent living standards.
Minimum wages revision: Revised every 5 years (or 2 years for DA component); advisory boards make recommendations; Variable DA linked to CPI.
Payment of Bonus Act 1965: Employees earning up to Rs 21,000/month get bonus; minimum 8.33% of wages; maximum 20%; payable within 8 months of accounting year.
Bonus minimum threshold: Minimum bonus = 8.33% of wages or Rs 100 (whichever is higher); payable even if company makes no profit in 5 years.
Equal Remuneration Act 1976: Prohibits discrimination in pay between male and female workers for same/similar work; Equal Remuneration Authority to investigate.
Payment of Wages Act 1936: Ensures timely payment of wages; employer must pay within 7th day of next month (5,000+ workers); 10th day for others.
Gratuity and Income Tax: Gratuity is tax-exempt up to Rs 20 lakh for non-government employees; no tax limit for government employees on gratuity.
Gratuity under Code on Social Security 2020: Gratuity Act will be replaced by the Social Security Code 2020; fixed term employees also entitled to gratuity pro-rata.