The economics of menstrual leave

The decision of the Karnataka government to grant one paid menstrual leave per month for women employees across both government and private sectors marks a landmark moment in India’s labour policy. From an economic standpoint, this move carries several positive dimensions, especially when considered alongside international and other Indian state precedents.

One of the most immediate and tangible economic benefits expected is the reduction of presenteeism, a situation where employees work despite health-related discomfort and are consequently less productive.

Menstruation often involves physical pain, fatigue, and psychological stress that may temporarily reduce concentration and efficiency. When women continue to work under such conditions, the economy suffers an invisible productivity loss. Granting one paid leave per month allows women to rest and recover, thereby improving performance and consistency on other working days. Over time, this approach may lead to higher overall productivity, fewer medical complications, and lower absenteeism due to untreated menstrual health issues. The potential benefits are particularly pronounced in sectors like manufacturing and Information Technology, both major contributors to Karnataka’s economy.

Another important positive effect is in terms of female labour force participation and retention. Measures that improve working conditions for women often help retain talent and reduce turnover. For women who might otherwise reduce hours, drop leaves without pay, or even exit the workforce due to unmanaged menstrual health burdens, this kind of policy can be a stabilising factor. Karnataka’s move may thus contribute to improved gender equity in employment. Over a longer horizon, this strengthens human capital accumulation, as more women remain active in employment, gain experience, skills, promotions, and contribute tax revenues.

Karnataka’s policy also generates positive social signalling and externalities. By formalising menstrual leave across sectors, the state normalises discussions around menstruation and its impacts, reducing stigma. This may lead to improved health outcomes, greater awareness, and investment in menstrual health infrastructure, such as workplace sanitation, access to hygienic products, rest facilities, and supportive health policies. Such infrastructure itself has economic returns: lower absenteeism, fewer medical complications, and enhanced dignity, which signals higher morale among women workers.

Bihar provides a useful precedent. As early as 1992, it introduced a policy granting two days of paid menstrual leave each month to women government employees. Although this policy had a narrower scope, it demonstrates that such leave can be implemented over decades without collapsing labour market outcomes. Odisha, more recently, introduced a one-day menstrual leave policy for employees in the state government sectors. Kerala has taken another track, extending menstrual leave to female students in higher education institutions. Karnataka appears to build on these precedents by offering a more generous and broadly applicable policy, reducing differential treatment between sectors, and raising the standard of workplace welfare.

Internationally, several countries have had menstrual leave policies in place or in discourse. Japan, South Korea, Indonesia, Zambia, the Philippines, and Taiwan are among the nations that recognise menstrual leave with variation in the number of days allowed, whether the leave is paid or unpaid, and eligibility conditions.

A national model?

Academic research comparing these jurisdictions often finds that there is concern over menstrual leave being underused (e.g. because of stigma) or misinterpreted by employers, but the net effect on labour market participation of women has not been clearly negative. Scholars emphasise that leave policies perform best when accompanied by legal safeguards against discrimination, transparency in leave usage, and cultural acceptance.

Critics argue that menstrual leave may inadvertently reinforce gender stereotypes or discourage employers from hiring women. Such risks can be mitigated through proper legal design and monitoring. Karnataka’s challenge will be to ensure that leave days are treated as legitimate health entitlements, not performance liabilities.

Transparent implementation guidelines, confidential leave application systems, and penalties for discrimination in hiring or promotions will be vital. Periodic evaluation of usage rates, productivity indicators, employee satisfaction, and firm-level outcomes can inform refinements.

From an economic perspective, Karnataka’s menstrual leave policy promises multiple positives. It has the potential to improve productivity, enhance gender equality in the workforce, reduce turnover, and produce important positive externalities in health and social norms. The examples from Bihar, Odisha, Kerala, and international jurisdictions suggest that such policies can be effective. If the results demonstrate improved retention, reduced absenteeism, and positive morale effects, Karnataka’s policy could serve as a model for nationwide adoption.

(The writer is an associate professor, Department of Economics, Christ
University, Bengaluru)

Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.