India\nis one of the few countries which mandate 26 weeks of paid maternity leave\nwithout providing any subsidy to corporates to fund this benefit. Companies\nneed to budget for this, along with funding the cr\u00e8che benefit for the\nreturning mother. With recent clarifications and Govt focus on implementation\nof the benefit, it\u2019s imperative for companies to stay compliant and allocate\nfunds for this. If budgeted and implemented well this benefit can prove to be a\ngame changer to arrest the leaking pipeline on account of maternity.<\/p>\n\n\n\n
Depending\non the nature of arrangement of the cr\u00e8che benefit – On-site, near- site or\nmulti site tie ups, there are various cost models involved <\/p>\n\n\n\n
I. Onsite cr\u00e8che<\/strong>\n\u2013 The cr\u00e8che facility set up in the office premises for employees. About 12%\ncompanies provide for an onsite cr\u00e8che. The two cost components are – onetime\nset up cost and ongoing operational cost. <\/p>\n\n\n\n (i)\nSpace – Guidelines under Factories Act mention 20 sq ft space per child and\nState guidelines mention 10 \u2013 12 sq ft per child. As per market practice, most\ncompanies allocate 35 \u2013 40 sq ft per child and provide for future demand as\nwell. <\/p>\n\n\n\n (ii)\nCompanies incur cost in designing, civil work and childproofing the area.<\/p>\n\n\n\n (iii)\nCompanies provide for equipments like AV system, refrigerator, water purifier,\nmicrowave\/ induction plate, furniture like child friendly chairs, tables,\ncradles, sleeping cots, mattresses, toys etc <\/p>\n\n\n\n This\ncan vary anywhere from INR 2 \u2013 10 lakhs approximately\ndepending on the space and quality of design. The cost of real estate is not\nincluded in this. <\/p>\n\n\n\n II. Near site cr\u00e8che<\/strong>\n– This is one of the most preferred and prevalent models among employers as it\ninvolves minimal\/ no capex. In this arrangement, companies\u2019 tie-up with a\nnearby daycare centre. More than 70% of companies are adopting this approach. <\/p>\n\n\n\n 1.\nCompanies need to make an informed\nchoice<\/strong> by understanding cr\u00e8che options available near office. Safety\nmeasures, infant care availability, staff: child ratio, cr\u00e8che infrastructure\nand hygiene, emergency process management need to be considered. <\/p>\n\n\n\n 2.\nProper communication and design of\ncr\u00e8che benefit<\/strong> policy is important to create awareness of this benefit as\nper the Maternity Benefit Amendment Act provisions. <\/p>\n\n\n\n Costs Involved <\/strong><\/p>\n\n\n\n 1.\nCompany can work with a childcare benefit management company that will support\nthem with the tie-up, policy and communication design. The average cost can\nvary anywhere from INR 50,000 \u2013 INR 2, 00,000 depending on the no of locations.\n<\/p>\n\n\n\n 2.\nMonthly cr\u00e8che fees<\/strong> can vary\nanywhere from INR 8000 \u2013 INR 20,000 depending on the location and the cr\u00e8che partner\nfinalised. In cities like Mumbai, Gurgaon, Bangalore daycare fees are on the\nhigher side. Near site tie-ups too sometimes requires the employer to\nunderwrite few seats. The cr\u00e8che in return blocks those many seats for that\ncompany for a year. When companies have an assured demand for daycare or when\nthere is a demand \u2013 supply gap, companies can adopt this model. <\/p>\n\n\n\n