Less paternity leave adds to motherhood penalty: Why PM’s EAC wants a change in leave policy

Paternity leaves: The key reasons for deficiencies in the Indian childcare system is the absence of framing it as an employment-enabling infrastructure, argued the  Economic Advisory Council to the Prime Minister (EAC-PM). It cited the ‘motherhood penalty’ that puts the onus of child-rearing on the mother and called for gender-neutral childcare leaves and policies.

The paper, titled ‘Re-imagining the Care Economy: From Private Burden to Social and Economic Infrastructure’, authored by Dr Shamika Ravi, member of the EAC-PM, Mitali Nikore, founder and chief economist at Nikore Associates, Dr. Bhabesh Hazarika, Economist, National Institute of Public Finance and Policy (NIPFP), and Sindhuja Penumarty, Young Professional at EAC-PM, spoke of a phased approach to parental leave reforms.

“The motherhood penalty thus arises not from maternity protection per se, but from its isolation within a broader care regime. This needs pooled financing instruments and incremental reforms in gender-neutral childcare leaves,” the council argued.

LOW FEMALE LABOUR PARTICIPATION

The council said that maternity leave alone is an incomplete explanation for India’s low female labor force participation (FLFP). However, despite rising educational attainment, stringent employer incentives contribute to the disconnect.

MUST READ | Planning pregnancy: Should I buy a separate health policy for better maternity cover?

Factors such as absence of mandated paternal leave and selective childcare leaves inherently puts women as default caregivers. Paternity leave provisions are still minimal – male central government employees are entitled to 15 days of leave, while there are no statutory mandates for the private sector. There are some state governments, including Sikkim, that are an exception and offer 30 days.

GENDER-NEUTRAL LEAVES

The EAC-PM said that internationally there is a shift towards gender-neutral parental leaves. “Among the G20 countries, nearly 50 per cent of the countries have legal provisions that offer parental leave and partially fund benefits to the primary caregiver, regardless of their gender,” they said.

Some Nordic countries even have a ‘use it or lose it’ father quotas. Sweden has a 90-day individual allocation, and Iceland an equal 6 month split. These norms have positive spillovers on female workforce participation by “redistributing care responsibilities more equitably between parents”, they said.

The council suggested a “transition from maternity-centric to joint or shared parental leave” but with institutional redesign.

DON'T MISS | Maternity is top cost for companies — why your workplace health insurance may get costlier in 2026

SHARED PARENTAL LEAVES

The council said India’s current parental leave framework focuses on maternity leave but studies suggest that providing paid time off for childcare contributes to healthy child development, improves maternal health, and enhances families’ economic security. Evidence also suggests that shared parental policies increase men’s participation in care work.

The EAC-PM quoted an advisory issued by the Ministry of Labour and Employment in 2024 to employers to:

• Ensure balance between employment and caregiving responsibilities for both men and women 
• Take measures to encourage men also to take up flexible working time arrangements to participate in care responsibilities

Based on this, the council suggested: “The MoLE could introduce phased reforms in parental leave provisions. The first phase could begin by extending statutory paternity leave for employees in the private sector. In the second phase, MoLE may revisit the length of these leave entitlements from a gender-neutral lens and consider mandating a more gender balanced combination of maternity, paternity and gender-neutral parental leaves.”

MUST READ |  What health insurance add-ons should one look for that cover maternity and new-born care?