Mumbai: Lauding amendments to the law on maternity benefits, market experts on Friday said this will lead to better gender diversity and encourage more women to continue working and have fulfilling careers. According to the amendment, paid maternity leave benefit has been extended to six months.
“While women form nearly 50% of the population, their participation in formal employment is only 10% or less. Also, their representation drops higher up the hierarchy,” Lohit Bhatia, IKYA Human Capital Solutions Business Head, Staffing Solutions, said.
He said at senior levels and board levels, women account for only 1% owing to the challenges a woman faces during and after maternity. “With this amendment, many of the challenges faced by women can be addressed. In fact, it can help in bringing down the dropout ratio,” he added.
The Maternity Benefit (Amendment) Bill, 2016 was passed by the Lok Sabha on Thursday, months after the Rajya Sabha approved it.
It entitles paid maternity leave of 26 weeks, up from the earlier 12 weeks. Thammaiah BN, Managing Director, Kelly Services India said it is a good initiative and will help increase gender diversity across the organised sector.
“It will address the issue of employee retention and create a more meaningful, lasting relationship between employer and employee. Women will find it easier to return to work without having to make a choice between motherhood and a career,” she said.
Jayanthi Vaidyanathan, Director (Human Resources) at Paypal, said the government move will encourage more women to have fulfilling careers.
