1. Disability Benefit
  2. Maternity Benefit
  3. Gratuity

Disability Benefit

The Employee’s Compensation Act, 1923, at one time referred to as the ‘Workmen’s Compensation Act, 1923’, needs the leader to pay compensation to workers or their families in cases of employment-connected injuries that end in death or incapacity.

In addition, the staff utilized inbound sorts of occupations are exposed to the chance of acquiring bound diseases, that are peculiar and inherent to those occupations. An employee acquiring are disease is deemed to possess suffered who accident out of and within the course of employment, and also the leader is susceptible to pay compensation for an equivalent. Injuries leading to permanent total and partial unfitness are listed in elements I and II of Schedule I of the Employee’s Compensation Act, whereas activity diseases are outlined in elements A, B, and C of Schedule III of the Employee’s Compensation Act.

Maternity Benefit

The Maternity profit (Amendment) Act, 2017 came into force on Gregorian calendar month one, 2017, and will increase the number of the key advantages mandated underneath the previous Maternity profit Act of 1961. The amended law provides girls within the organized sector with paid maternity leave of twenty-six weeks, up from twelve weeks, for the primary 2 kids. For the third kid, the maternity leave entitled is twelve weeks. Bharat currently has the third most maternity leave in the world, following North American country (50 weeks) and Norway (44 weeks).

The Act additionally secures twelve weeks of maternity leave for mothers adopting a baby below the age of 3 months yet on authorization mothers (biological mothers) are taking surrogacy. The 12-week amount in these cases is calculated from the date the kid is handed over to the adoptive or authorized mother.

In different provisions, the law mandates that each institution with over fifty workers should give crèche facilities at intervals straightforward distance, that the mother will visit up to fourfold daily. For compliance functions, corporations ought to note that this explicit provision can inherit results from the national holiday, 2017.

The Maternity profit (Amendment) Act introduces the choice for ladies to barter work-from-home, if they reach our understanding with their employers, once the maternity leave ends.

Under the pre-existing Maternity profit Act of 1961, each lady is entitled to, and her leader is to blame for, the payment of maternity profit at the speed of the typical daily wage for the amount of the employee’s actual absence from work. except for twelve weeks of regular payment, a feminine employee is entitled to a medical bonus of agency three,500 (US$47.85).

The 1961 Act states that in the event of a miscarriage or medical termination of gestation, the worker is entitled to 6 weeks of paid maternity leave. workers also are entitled to an extra month of paid leave just in case of complications arising because of gestation, delivery, premature birth, miscarriage, medical termination, or a tubectomy operation (two weeks during this case).

In addition to the higher than, the 1961 Act states that no company shall compel its feminine workers to try and do tasks of a gruelling nature or tasks that involve long hours of standing or that by any means are probably to interfere together with her gestation or the traditional development of the craniate, or are probably to cause her miscarriage or otherwise adversely have an effect on her health.


The Payment of Gratuity Act, 1972 directs institutions with ten or additional workers to supply the payment of fifteen days of further wages for every year of service to workers UN agency have worked at a corporation for 5 years or additional.

Gratuity is provided as a payment payout by a corporation. within the event of the death or unfitness of the worker, the gratuity should still be paid to the politico or the heir of the worker.

The leader will, however, reject the payment of gratuity to the worker if the individual has been terminated from the task because of any misconduct. In such a case of forfeiture, there should be a termination order containing the costs and also the misconduct of the worker.

Gratuity is calculated through the formula mentioned below:

Gratuity = Last Drawn regular payment × 15/26 × Tenure of Service, where:

  • The magnitude relation fifteen/26 represents 15 days out of twenty-six operating days in a very month.
  • Last Drawn regular payment = Basic regular payment + expensiveness Allowance.
  • Tenure of Service is rounded up or right down to the closest full year. for instance, if the worker encompasses a total service of ten years, ten months, and twenty-five days, eleven years are factored into the calculation.

Gratuity is exempt from taxation on the condition that the number doesn’t exceed fifteen days’ regular payment for each completed year of service calculated on the last drawn regular payment (subject to most of 2 million). it’s vital to notice that leaders will choose to value additional highly to pay more gratuity to the worker, which is thought of as ex-gratia and could be a voluntary contribution. Ex-gratia is subject to tax.