Maternity Benefits Under the New Labour Codes – What Every HR Leader Needs to Know in 2026

The Maternity Benefit Act, 1961 has been subsumed into Chapter VI of the Code on Social Security, 2020. From 21 November 2025, maternity benefits are governed by Sections 59 to 72 of that Code. The Code on Wages, 2019 continues to matter because the average daily wage used for calculating maternity benefit is linked to the statutory definition of wages and the minimum rate of wage under the Code on Wages, 2019.

Here’s the practical position as it stands in August 2026.

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Eligibility

A woman seeking maternity benefit under Section 60 must satisfy the applicable eligibility conditions, including the 80-day work requirement prescribed under the Code. For adoptive and commissioning mothers, Section 60(4) separately provides 12 weeks of maternity benefit from the date the child is handed over.

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Duration of Leave

• 26 weeks (of which not more than 8 weeks may precede the expected date of delivery) where the woman has fewer than two surviving children.
• 12 weeks (of which not more than 6 weeks may precede delivery) where she already has two or more surviving children.
• 12 weeks for a woman who legally adopts a child or for a commissioning mother, counted from the date the child is handed over.

Following the Supreme Court’s judgment in Hamsaanandini Nanduri v. Union of India (17 March 2026), the three-month age restriction in Section 60(4) no longer limits maternity benefit for legally adopting mothers.

Leave for miscarriage or medical termination of pregnancy is 6 weeks. Leave for tubectomy is 2 weeks.

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Calculation of Maternity Benefit

The benefit is payable at the rate of the woman’s average daily wage for the period of her actual absence. Average daily wage means the average of the wages payable to her for the days on which she has worked during the three calendar months immediately preceding the date from which she absents herself on account of maternity, subject to the minimum rate of wage fixed or revised under the Code on Wages, 2019.

Payroll teams should map the calculation to the statutory definition of “wages” under the Codes (including the 50% rule) rather than simply carrying forward the earlier payroll methodology.

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Crèche Facility – Section 67 and the 2026 Rules

Every establishment to which Chapter VI applies and which employs fifty or more employees must provide a crèche facility within the prescribed distance, either separately or through common facilities. The woman is entitled to four visits a day to the crèche, including her rest intervals.

Under the Central Rules, the crèche is ordinarily required to be located within one kilometre of the establishment, subject to the prescribed exception for certain industrial parks or areas with a common crèche facility.

Where the prescribed physical crèche facility is not provided, the employer may, subject to the prescribed agreement mechanism, pay a crèche allowance instead. The agreement must be with the negotiating union or negotiating council, or where there is no such body, with the majority of the employees.

Key features of the allowance

• Minimum ₹500 per month per child.
• Generally admissible for up to two children (with the specified exception for multiple births arising from a second childbirth).
• Applicable in respect of children below six years of age.
• The Rules expressly cover women, widowers and single-parent employees who are eligible and whose establishment falls within the coverage.

The employer cannot decide this unilaterally. Agreement is mandatory. The statutory floor of ₹500 is a minimum; an employer may provide a higher amount.

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Other Key Entitlements

• Medical bonus of ₹3,500 (or such higher amount as may be notified) where the employer does not provide free pre-natal confinement and post-natal care.
• Two nursing breaks of 15 minutes each every working day until the child attains 15 months of age. Additional travel time of up to 15 minutes is permitted depending on the distance to the crèche or childcare arrangement.
• Work from home may be permitted after the maternity benefit period ends, where the nature of work allows and both sides agree.
• Dismissal or discharge during the period of absence on account of pregnancy or maternity is prohibited. No deduction of wages is permitted for the nursing breaks.

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What HR Should Do

1. Update the maternity policy and employee handbook to reflect Chapter VI of the Code on Social Security, 2020.
2. Recalculate sample maternity benefit amounts using the current statutory definition of wages.
3. Decide the crèche approach early — own facility, common facility, or allowance through a documented agreement — and record the decision properly.
4. Ensure 80-day tracking is accurate in the attendance system.
5. Brief line managers. Most compliance failures happen at the team level, not in the policy document.
6. Give every woman, at the time of her initial appointment, written and electronic intimation of the benefits available under Chapter VI (as required under the Code and the Rules). Form XIV under the Rules prescribes the abstract of Chapter VI and the Central Rules that must be exhibited under Section 71.

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The Central Rules provide the central framework, but the applicable State or appropriate-government rules and the specific coverage of the establishment must also be checked before implementation.

This is the position as of August 2026.