Maternity Leave pay gives to employee basic salary or gross CTC?

In actual, I am working in a Japanese company and I want to avail Maternity Leave. Request you to support me in understanding when I can ask for Maternity Leave.

I asked my HR about the pay during Maternity Leave, and she mentioned that 6 months of basic pay will be provided. I am curious to know if it is true that during Maternity Leave, the pay given to the employee is based on the basic salary or gross CTC. I have been on the company payroll for almost 2 years.

She mentioned that Yamaha and Honda Company have the same rule, but I am not convinced.

Legal provisions as per Maternity Benefits Act

Sec 5:

Right to payment of maternity benefit.

5. Right to payment of maternity benefit - 1*[(1) Subject to the provisions of this Act, every woman shall be entitled to, and her employer shall be liable for, the payment of maternity benefit at the rate of the average daily wage for the period of her actual absence, that is to say, the period immediately preceding the day of her delivery, the actual day of her delivery, and any period immediately following that day.]

Explanation - For the purpose of this subsection, the average daily wage means the average of the woman's wages payable to her for the days on which she has worked during the period of three calendar months immediately preceding the date from which she absents herself on account of maternity, 1*[the minimum rate of wage fixed or revised under the Minimum Wages Act, 194.

Dear Nathrao Sir,

Please help confirm if pay depends on the company or not, as our company offers only a basic salary instead of a per day salary.

Regards,
Jaya

In this case, you have to pay the basic salary. CTC is a much broader term than the actual salary received; it is the cost borne by the unit and includes many factors that are not part of the monthly salary. Therefore, such extra factors can be excluded.

Dear KK!HR,

I am sharing the breakdown of my salary as follows:

- Basic
- HRA
- Medical
- Special Allowance
- Fuel/Vehicle Maintenance Reimbursement
- Sodexo Meal Coupons
- Sodexo Gift Vouchers

Thank you.

Basic HRA is definitely included, while Fuel/Vehicle Maintenance and Sodexo Coupons/Vouchers are excluded. Regarding Medical and Special Allowance, are they regular payments or reimbursements? For the computation of the amount, refer to Nathrao Sir's post.

Dear Sir,

One of the employees who has been covered by ESI since 2015 does not want to claim maternity benefits from ESI as she has medical insurance through her husband. Does the employer have to pay her salary for 26 weeks?

Please advise.

Srinivas

If the employee is covered under the ESI Scheme, the employer does not have to incur liability for maternity benefits.

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Dear Srinivas,

Let her claim 26 weeks Maternity Benefit from ESI. Medical Insurance will cover only hospitalization charges/benefits and not the leave period.

Suresh

Is anyone confirmed about the Honda and Yamaha Maternity Law?

Our company is saying we will follow that rule. Kindly confirm if possible.

Regards,
Jaya