INDIA BUSINESS WORLD - FEBRUARY 1^st - FEBRUARY 15^st - 2008

MATERNITY BENEFIT ACT, 1961 TO BE AMENDED

The Union Cabinet today approved a proposal for introduction of a Bill in the Parliament for amending the Maternity Benefit Act, 1961.

The existing ceiling of Rs. 250/- as Maternity Bonus under Maternity Benefit Act, 1961 is inadequate in the present economic scenario. Hence, there is an urgent need to increase the amount to Rs. 1000/- so that it could be a source of financial support to working women as far as maternity benefits are concerned.

This decision will empower the Central Government to revise the medical bonus after every three years payable under the Maternity Benefit Act, 1961, subject to the maximum limit not being more than an amount of Rs. 20000/- ( Rupees Twenty Thousand) by issuing notification.