• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
MPWMost Powerful Women

India’s New Maternity Leave Policy Puts the U.S. to Absolute Shame

Claire Zillman
By
Claire Zillman
Claire Zillman
Editor, Leadership
Claire Zillman
By
Claire Zillman
Claire Zillman
Editor, Leadership
March 13, 2017, 10:45 AM ET

In India, only 27% of women work, and that deficit costs the country an estimated 2.5 percentage points of gross domestic product per year. Last week, India’s government made an attempt to rectify the problem by doubling its federally mandated paid maternity leave from three months to six.

The new, extended policy puts most of the rest of the world to absolute shame.

India’s new 26 weeks of paid maternity leave surpasses France’s 16-week leave and easily bests the 14 weeks available in Germany and Japan. If India was an OECD country it would rank sixth, alongside Israel and Poland, for longest paid leave. Only the U.K., Greece, Ireland, the Slovak Republic, and the Czech Republic offer new mothers more paid time off.

The United States, of course, guarantees women no paid leave at all. The Family Leave and Medical Act, made law in 1993, only ensures that eligible women don’t lose their jobs if they take up to 12 weeks off after having a child, but the measure does not require that women be compensated during that time. The prospect of a federally mandated paid parental leave policy received unprecedented attention in last year’s presidential election with both candidates rolling out their own proposals for nation-wide measures.

Since winning the White House, President Donald Trump has not officially introduced a plan, but he referenced paid leave for “parents” during his address to a joint session of Congress in late February, and First Daughter Ivanka Trump is reportedly pushing for Congressional support for a paid parental leave measure and child care tax benefits. The proposal President Trump endorsed on the campaign trail would give new moms six weeks of paid leave, which—if the measure passes—would put the U.S. in last place among OECD countries, tied with Australia and Portugal, which also guarantee six weeks.

Despite its generosity, India’s new law has its flaws. It only applies to the nation’s 1.8 million female workers in so-called organized labor and only if their company employs 10 or more people. Another 16 million women, who are either self-employed or work from home, exist outside that “organized labor” classification and won’t be covered. There’s also fear that the new policy will be a disincentive to hiring women because their potential leave is an additional expense and could be seen by employers as an inconvenience. But a reduction in turnover costs could offset the benefit’s expense if the new policy causes fewer women to leave the workforce to have children.

More broadly, there’s hope that the new policy will make Indian business more accommodating to women. Prime Minister Narendra Modi, for one, is convinced of its upside. On social media, he called the bill a “landmark moment in our efforts towards women-led development.”

This story first appeared in Fortune’s World’s Most Powerful Women newsletter.

About the Author
Claire Zillman
By Claire ZillmanEditor, Leadership
LinkedIn iconTwitter icon

Claire Zillman is a senior editor at Fortune, overseeing leadership stories. 

See full bioRight Arrow Button Icon
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.