BANGALORE: Narendra Modi-led NDA government aims at providing maternity leave to women employees between three months to six months, virtually double bonus payments and allows the gratuity to shift between jobs. These impending changes in employment laws could boost Modi government's credentials while it further aims on building ambitious reforms in labor law, reports ET.         

A senior labor ministry official said, “The changes in the Payment of Bonus Act would raise the salary limit for getting a bonus from Rs 10,000 per month to Rs 19,000, and are at an advanced stage with a draft Cabinet note being moved earlier this month for comments from ministries.” On the other hand, the official added that the government will be setting off stakeholder consultations to revise the Maternity Benefits Act of 1961 the Payment of Gratuity Act of 1972.

Companies are now enforced to grant 12 weeks of maternity leave while several top employers are providing additional time off and extra benefits. Case in point scenario, Accenture provides five months off to new mothers while Flipkart provides 24 weeks of paid leave. Similar practices have also been found in other multinational firms and investment banks where Citibank provides crèche allowance to new mothers.

Regarding these the official said, “The ministry of women and child development has been pursuing this with us extensively as it is primarily responsible for women's welfare, so we are framing a proposal to kick-off talks with employers and trade unions on enhancing the maternity leave to 24 weeks.” The given option however put in consideration to restrict the enhanced maternity leave to two children, nevertheless, an employee baring third child would be provided 12 weeks off with the present law.

Moreover, the tripartite discussions is also expected to launch on modifying the gratuity law to eliminate the requisite for employees with a minimum of  five years in that particular workplace is eligible for the benefit. In addition, all employees earning up to Rs 10,000 a month are entitled for a minimum bonus of 8.33 percent and a maximum of 20 percent of their annual salary. This ceiling also includes productivity-linked bonus that employers provide. The latest ceilings under the Bonus Act are expected to be Rs 19,000 per month with a salary limit for eligibility and Rs 6,600 with salary limit for bonus calculation purposes.

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