The Union Cabinet gave the go-ahead for introduction of a bill in Parliament for amending the Maternity Benefit Act, 1961 to provide for enhancing the maternity bonus.

“The existing ceiling of Rs 250 as maternity bonus under Maternity Benefit Act, 1961 is inadequate in the present economic scenario,” Information and Broadcasting Minister P R Dasmunsi said.

“Hence, there is an urgent need to increase the amount to Rs 1,000 so that it could be a source of financial support to working women as far as maternity benefits are concerned,” he said.

This decision will empower the Centre 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 20,000 by issuing notification.

“This is good news for women, especially in the private sector,” Dasmunsi said.
He said the Bill was earlier referred to a standing committee, which held discussions on it.
“The Cabinet today (Thursday) agreed with the recommendation that the existing ceiling of Rs 250 as maternity bonus is really inadequate in the present economic scenario,” Dasmunsi said.