The simulation was conducted in 10 economic sectors. Experts believe that if the new law encompassed the whole Indian economy, the losses would amount to 12 million jobs. The high costs for companies are under accusation, which risk closing if they pay the salaries of pregnant women.
New Delhi (AsiaNews / Agencies) - In India at least 1.8 million women are at risk because of the law on maternity leave approved by the Narendra Modi government. It is the result of a simulation conducted by TeamLease Services Ltd, a human resources company.
According to experts, the legislation, which introduces elements favorable to new mothers (for example by increasing the number of weeks of leave from 12 to 26) risks having the opposite effect: discouraging women from pursuing careers and decreasing the rate of female employment.
The law is called Maternity (Amendment) Bill 2017 and has been in force since July 2017. With it the government has increased maternity benefits for pregnant women and elevated the weeks of parental leave. On the part of employers, the most controversial element is the high cost of maintaining pregnant women or those who have just given birth: between 80 and 90 percent of the annual salary for office workers and up to 135% for factory workers. The research shows that these percentages pose a serious threat to the survival of companies, which usually employ few workers.
The results represent a new wake-up call for a country where in 2016 the percentage of women in employment decreased by 24%. At the same time, female employment continues to be of fundamental importance for general growth: in this regard, the strategic consulting firm McKinsey and Co. estimates over 700 billion dollars (more than 600 billion euros) the increase in GDP by 2025 if the number of female labor force increases in India.
The study was applied in 10 economic sectors: aviation, IT, IT services, education, e-commerce, real estate agencies, manufacturing, banking and financial services, retail and tourism. In general, TeamLease analysts believe that if the research were conducted across all business sectors, job losses could hit the 12 million mark.