Creches and the Maternity Benefit Act

How the 2017 amendment extended paid maternity leave to 26 weeks and required creches in larger workplaces, and the unintended effects on hiring women.

Childcare affects whether mothers can work.

Maternity Benefit (Amendment) Act, 2017

Raised paid maternity leave from 12 to 26 weeks for women in establishments with 10 or more workers.
Required establishments with 50 or more employees to provide a creche, either on-site or nearby.
Allowed work from home after leave, where possible.

Benefits

Supports mothers’ health and bonding.
Helps women return to work.

Unintended effects

Employers pay the full cost of leave, unlike countries where the state funds it.
Some surveys suggested employers became more hesitant to hire women, especially small firms.
Most women work informally and aren’t covered.

Creche compliance

Many employers don’t comply with creche requirements, and enforcement is weak.

Better design

Economists suggest:

Public funding of maternity leave through social insurance.
Paternity leave to share care.
Public or subsidised creches.

Palna scheme

The government’s Palna scheme supports creches linked to anganwadis.

The hiring hesitation

A small firm must pay 26 weeks of maternity leave from its own funds. Worried about costs, its owner quietly prefers male applicants, an unintended effect of the law.

Thinking longer mandated leave always helps women's employment

When employers bear costs, it can discourage hiring women.

Key takeaways

The 2017 amendment extended maternity leave to 26 weeks.
Workplaces with 50+ employees must provide creches.
Employer-funded leave may discourage hiring women.
Public funding and paternity leave could help.