Salary payment for employees on Maternity group leave

Salary payment for employees on Maternity group leave

If employee is on an approved Maternity group leave as covered by Maternity Benefits Act - refer article for details on "Maternity group leaves" - and if the employee is covered under ESI then the salary for the duration of leave is to be claimed from ESIC and will not be paid by the company. If the employee is not covered under ESI then salary for the period when she is on Maternity leave will be paid by the company.

This option is enabled only when
a) Maternity group leaves are enabled in Leave module of EazeWork HRMS, and
b) ESI is enabled and employees are properly mapped to ESI

When running payroll you will get a notification on Payroll Validation page as shown below.


When you run payroll the salary which would be paid to this employee would be reduced by the number of days for which she is on the Maternity / Commissioning / Adoption leave. Calculation of the salary is explained below - ________________________________________________________________________________________________________________
Example
Suppose we are running April 2019 payroll and employee is on approved Maternity Leave from 10-April for a period of 180 days till 6-Oct.

In April payroll salary would be paid for 10 days : 1st to 10th April period
In May to September payroll no salary would be paid
In October payroll salary would be paid for 25 days : 7th to 31st October period

The basis of payment or deduction would be the actual number of days in the month.
April : 10 / 30 x (Wages)
October : 25 / 31 x (Wages)

Any LWP or other deductions will be handled as they are done normally but during the period employee is on Maternity leave there cannot be any LWP.

If any variable pay, adhoc payments or adhoc deductions are made then they would be done as normal.
_________________________________________________________________________________________________________________

 If the Maternity Leave is submitted and approved from a back date and employee has already been paid in payroll for that period then system will not recover the past payment which has already been made.

Labor Welfare Fund deduction if applicable will continue as per Government norms during this period.



    • Related Articles

    • Payment of salary reimbursements

      Menu Path: Payroll >Expenses Accessible to: Accountant Click on "Expense Advice" button on the top right of the page as shown below. Vouchers which are pending for payment can be processed on this page, a row on the top of the page will show the ...
    • Payment of Gratuity

      Company which are fulfilling the following conditions have to pay Gratuity to employees when they resign or retire as per Gratuity Act 1972 and its subsequent amendments. Some aspects of Gratuity payment rules are mentioned below. 1. Company should ...
    • Components of a Salary Structure

      Employee's salary structure consists of multiple categories and within each category there can be multiple heads. Categories Explanation Monthly Taxable All the heads which are taxable are a part of this category – for example Basic, Special Pay ...
    • Understanding taxability of salary components

      Under the old tax regime applicable by default till 2019-20 there are various scenarios in which tax free salary or benefits can be taken in India payroll. Refer to the article on New regime and Old regime for more details. There are some tax free ...
    • Leave encashment payout

      Leave encashment is calculated on the basis of three factors 1. Number of days of leave encashment - this information flows in from Eaze - Leave module if it is integrated or in case of Full and Final it can be manually updated by Payroll Manager 2. ...