Maternity Benefits Act Compliance
in Mumbai - Complete Guide

Step 1: Get Your Registration Right

Before anything else, your Mumbai establishment needs to be registered with the Maharashtra labor department. Think of this as your compliance foundation.

What you'll need:

• Business registration documents
• PAN card
• Address proof of your office
• Employee list with basic details
• Bank account information
• Authorized person's details

Pro tip: Start this process early. It can take a few weeks, and you don't want to be caught off-guard when an employee announces her pregnancy.

Step 2: Display the Act (Yes, Really!)

You need to put up an abstract of the Maternity Benefit Act where everyone can see it. This isn't bureaucratic nonsense—it's how your employees learn their rights.

Important: The display should be in English AND Marathi. You can download the official version from the labor department website.

Bonus points: Include this information in your employee handbook and company intranet. Make it easy for people to find.

Step 3: Maintain the Right Records

Here's where many Mumbai businesses trip up. You need to maintain specific registers, and they need to be accurate.

Must-have registers:

• Attendance Register: Daily attendance for all employees. This proves the 80-day eligibility.
• Maternity Benefit Register: Details of every woman who takes maternity leave—names, dates, amounts paid, the works.
• Wage Register: Clear records of salaries paid, including all components.

Keep these records for at least 3-5 years. Trust us, during inspections or disputes, these registers are your best friends.

Step 4: Calculate Benefits Correctly

This is crucial. Get the math wrong, and you'll either shortchange your employee or overpay unnecessarily.

Here's the formula:

• Take the woman's total wages for the 3 months before she gives her maternity notice
• Divide by the number of days she actually worked during those months
• That's her daily wage rate for maternity benefits

Example: Employee gives notice in January, planning leave from March. You calculate using October, November, December wages. If she earned ₹90,000 over 60 working days, her daily rate is ₹1,500.

Step 5: Process Leave Applications Smoothly

When an employee applies for maternity leave, you need a clear process.

What the employee should submit:

• Written application (at least 6 weeks before expected delivery)
• Expected delivery date
• Desired leave start date
• Doctor's letter or prescription

What you should do:

• Acknowledge receipt immediately
• Confirm the approved dates
• Specify the benefit amount she'll receive
• Outline the payment schedule

Be kind and prompt. This is a stressful time for your employee. Clear, quick responses make a huge difference.

Step 6: Know the Leave Entitlements

The 2017 amendment made things more generous but also more complex.

26 weeks of paid leave:

• For women having their first or second child
• Can take up to 8 weeks before delivery
• Remaining weeks after delivery

12 weeks of paid leave:

• For women who already have two or more children
• 6 weeks before and 6 weeks after delivery

12 weeks for adoption/surrogacy:

• From the date the child (under 3 months old) is handed over

6 weeks for miscarriage:

• Immediately following the miscarriage
• Medical certificate required

Step 7: Handle Payments Properly

Payment timing and accuracy are non-negotiable.

Payment rules:

• Must be paid during the leave period (not after)
• Continue regular salary cycles OR pay in installments
• Include all statutory deductions (PF, ESI, TDS)
• Transfer directly to bank account
• Keep detailed payment records

Most Mumbai companies do this: Continue regular monthly salary during maternity leave. It's simple and keeps things consistent for the employee.

Step 8: Work from Home Option

This is a game-changer introduced in 2017, but many employers don't know about it.

After the mandatory post-delivery leave, women can request to work from home for the remaining leave period—if the job permits.

Things to sort out:

• Which roles can work from home
• Performance expectations
• Communication protocols
• Equipment and technology support

This needs mutual agreement. Both employer and employee should be comfortable with the arrangement.

Step 9: Nursing Breaks Are Mandatory

Once your employee returns to work, she's entitled to nursing breaks until her child is 15 months old.

What's required:

• Two breaks per day
• 15-30 minutes each (check your state rules)
• In addition to regular breaks
• Counted as working hours (paid)

Going beyond: If you have 50+ employees, you need to provide creche facilities. Even if you're smaller, consider it—it's a huge benefit for working mothers.

Step 10: Employment Protection is Serious

You cannot—absolutely cannot—fire or dismiss a woman during her maternity leave. Period.

Protected period:

• From when she gives pregnancy notice
• Through her entire maternity leave
• Any termination during this time can land you in legal trouble

When she returns:

• Same position
• Same salary and benefits
• Same terms and conditions

Even if there are layoffs or restructuring, you need to be extremely careful. Get legal advice before making any decisions affecting women on maternity leave.

Step 11: Document Everything

In compliance, if it's not documented, it didn't happen.

Keep these safely:

• Original leave applications
• Medical certificates
• Approval letters
• Payment records with dates and amounts
• Attendance records
• Any correspondence about work-from-home
• Records of nursing breaks
• Extension requests and approvals

Digital or physical—doesn't matter. Just keep them organized and accessible for at least 5 years.

Step 12: Create Clear Internal Policies

The law sets the minimum. Your policy should make implementation easy.

Your policy should cover:

• How to apply for leave (forms, timelines)
• Approval process and timelines
• Payment schedule details
• Return-to-work procedures
• Nursing break arrangements
• Work-from-home options
• How performance reviews are handled during leave

Communicate this to everyone, not just women employees. When the whole team understands, support comes naturally.

Step 13: Be Inspection-Ready

Labour inspectors can visit anytime. Being prepared is smart business.

They'll check:

• Is the Act displayed properly?
• Are registers maintained and updated?
• Have benefits been paid correctly?
• Any complaints from employees?

If issues are found, cooperate and fix them promptly. Small mistakes caught early rarely become big problems.