Navigating maternity leave financially in India
Maternity leave is a godsend for working mothers in India, providing a much-needed respite to nurture their newborn without the fear of income loss. However, juggling finances during this period can be a daunting task. This article serves as a handy guide to managing your maternity leave finances in India, so you can focus on celebrating this momentous occasion without the burden of financial stress.
Plan ahead with a maternity budget
Building a maternity budget is key to navigating your leave without financial stress. First, estimate your expenses for the maternity period. This includes medical costs, baby essentials, and any extra help you might need. Compare this to your income during leave and savings. If there's a shortfall, plan how to cover it well before the baby arrives.
Understand your company's maternity benefits
In India, the Maternity Benefit Amendment Act 2017 ensures that women are entitled to up to 26 weeks of paid leave for their first two children. But, your company may have other benefits, such as flexible working hours upon return or a lump-sum benefit. Being aware of these specifics will allow you to strategize your leave more effectively.
Explore government schemes and benefits
The government of India has several schemes in place to provide financial assistance to mothers during maternity. For example, the Pradhan Mantri Matru Vandana Yojana (PMMVY) offers ₹5,000 in three installments to pregnant and lactating mothers for their first living child. These schemes can help ease financial strain during maternity leave.
Set up an emergency fund
A separate emergency fund is crucial during maternity leave to cover unexpected costs. Strive to save three to six months' worth of living expenses before going on leave. This fund should be easily accessible and distinct from your other savings or investments, providing a safety net for any unexpected financial needs during this important time.
Consider temporary income sources
If feasible, explore temporary income opportunities that can be balanced with pregnancy and early motherhood. Freelancing, consulting in your field of expertise, or even monetizing a hobby can generate extra income. These options demand less commitment than full-time roles, providing financial relief without overburdening new mothers. This strategy keeps the focus on the newborn while alleviating financial worries during maternity leave.
