₹3,500 Medical Bonus Under the Maternity Benefit Act — The Correct Legal Position
This one's been doing the rounds in HR groups as a "recent Gazette notification on Maternity Bonus changing to ₹3,500." We checked it carefully — the term is wrong and the figure isn't new. Here's the correct picture.
The correct legal term is Medical Bonus, not Maternity Bonus — the Maternity Benefit Act, 1961 doesn't contain any benefit called "Maternity Bonus." And the ₹3,500 figure isn't recent — it dates back to 2011.
What Medical Bonus Actually Is
Section 8 of the Maternity Benefit Act, 1961 creates a Medical Bonus — a fallback cash payment payable to a woman entitled to maternity benefit ONLY IF her employer does not provide free pre-natal confinement and post-natal medical care. It isn't paid automatically alongside every maternity leave.
Where the ₹3,500 Figure Actually Comes From
Fixed by Notification No. S.O. 2831(E), dated 19 December 2011, issued by the Ministry of Labour and Employment under Section 8(2) of the Act (statutory cap: ₹20,000). This raised the bonus from ₹2,500 to ₹3,500, amending an earlier 2008 notification that had raised it from ₹1,000 to ₹2,500. No further central notification has increased this figure since 2011 — it's stood at ₹3,500 for nearly 15 years.
A Likely Source of the Confusion
The Payment of Bonus Act, 1965 also once featured a ₹3,500 figure — as the wage ceiling for calculating statutory bonus. That figure was increased to ₹7,000 (or applicable minimum wage, whichever higher) via the 2015 amendment. So under the Bonus Act, ₹3,500 is actually outdated — the opposite of "recent." Easy to see how two unrelated ₹3,500 figures, from two different Acts, got mixed up.
What's Genuinely New Here
The Maternity Benefit Act has now been subsumed into the Code on Social Security, 2020, in force since 21 November 2025. Section 64 carries forward the medical bonus provision, and the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E), dated 8 May 2026) confirm under Rule 35 that the medical bonus remains ₹3,500. The amount is unchanged, but the governing law genuinely did change recently — almost certainly the real source of the fresh WhatsApp discussion.
Bottom Line
Use the correct term — Medical Bonus, under Section 64 of the Code on Social Security, 2020. Current amount — ₹3,500, unchanged since 2011, applicable only where the employer hasn't provided free pre/post-natal medical care.
Need Expert Help?
Find verified HR Compliance and Maternity Benefits Consultants on BusinessBazar — businessbazar.in/services/hr-consultant/ahmedabad
The correct legal term is Medical Bonus, not Maternity Bonus — the Maternity Benefit Act, 1961 doesn't contain any benefit called "Maternity Bonus." And the ₹3,500 figure isn't recent — it dates back to 2011.
What Medical Bonus Actually Is
Section 8 of the Maternity Benefit Act, 1961 creates a Medical Bonus — a fallback cash payment payable to a woman entitled to maternity benefit ONLY IF her employer does not provide free pre-natal confinement and post-natal medical care. It isn't paid automatically alongside every maternity leave.
Where the ₹3,500 Figure Actually Comes From
Fixed by Notification No. S.O. 2831(E), dated 19 December 2011, issued by the Ministry of Labour and Employment under Section 8(2) of the Act (statutory cap: ₹20,000). This raised the bonus from ₹2,500 to ₹3,500, amending an earlier 2008 notification that had raised it from ₹1,000 to ₹2,500. No further central notification has increased this figure since 2011 — it's stood at ₹3,500 for nearly 15 years.
A Likely Source of the Confusion
The Payment of Bonus Act, 1965 also once featured a ₹3,500 figure — as the wage ceiling for calculating statutory bonus. That figure was increased to ₹7,000 (or applicable minimum wage, whichever higher) via the 2015 amendment. So under the Bonus Act, ₹3,500 is actually outdated — the opposite of "recent." Easy to see how two unrelated ₹3,500 figures, from two different Acts, got mixed up.
What's Genuinely New Here
The Maternity Benefit Act has now been subsumed into the Code on Social Security, 2020, in force since 21 November 2025. Section 64 carries forward the medical bonus provision, and the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E), dated 8 May 2026) confirm under Rule 35 that the medical bonus remains ₹3,500. The amount is unchanged, but the governing law genuinely did change recently — almost certainly the real source of the fresh WhatsApp discussion.
Bottom Line
Use the correct term — Medical Bonus, under Section 64 of the Code on Social Security, 2020. Current amount — ₹3,500, unchanged since 2011, applicable only where the employer hasn't provided free pre/post-natal medical care.
Need Expert Help?
Find verified HR Compliance and Maternity Benefits Consultants on BusinessBazar — businessbazar.in/services/hr-consultant/ahmedabad
Need Help with Maternity Benefit Compliance?
This article is for general informational and educational purposes only. It does not constitute legal advice. It corrects a common terminology and date misconception based on official notifications researched in August 2026. Always verify current provisions and consult a qualified HR or labour law consultant. BusinessBazar accepts no liability for any errors, omissions, or outcomes arising from the use of this information.
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