Family allowances in India
India has no universal family allowance, but rolls out vast targeted programmes: Pradhan Mantri Matru Vandana Yojana (PMMVY) INR 5,000 at birth, Janani Suraksha Yojana (JSY) for safe deliveries, and the Maternity Benefit Act guaranteeing 26 weeks of maternity leave at 100% for formal sector workers.
No universal allowance. Targeted programmes: PMMVY (INR 5,000 birth cash transfer), JSY (institutional delivery incentive), Anganwadi (public nurseries), ICDS early childhood. Maternity Benefit Act 26 weeks at 100% (formal sector). State reforms: Tamil Nadu, Kerala — family pensions.
Pradhan Mantri Matru Vandana Yojana (PMMVY)
National conditional cash transfer programme for pregnant/breastfeeding women, launched 2017 (extended 2022):
- INR 5,000 (≈ €56) paid in 2 instalments for 1st child (INR 3,000 + 2,000)
- INR 6,000 paid at birth for 2nd child if girl (since 2022)
- Conditions: pregnancy registration, prenatal exams, child vaccination
- Paid via mother’s Jan Dhan bank account
- Run by the Ministry of Women and Child Development
- Beneficiaries: ~30 million women since 2017
Janani Suraksha Yojana (JSY)
Programme to promote institutional deliveries, launched in 2005:
- Poor rural areas (LPS — Low Performing States): INR 1,400/woman for institutional delivery
- LPS urban areas: INR 1,000/woman
- HPS areas (High Performing States): INR 700 rural / INR 600 urban
- + ASHA (Accredited Social Health Activist): INR 600/delivery to escort the woman
- Conditions: BPL (Below Poverty Line) or SC/ST (scheduled castes) status
- ~10 million beneficiary women/year
Maternity Benefit (Amendment) Act 2017
Law protecting formal-sector employees (>10 employees):
- 26 weeks of maternity leave at 100% of salary (2017 reform — was 12 weeks)
- 1st–2nd child: 26 weeks (8 before + 18 after)
- 3rd child and beyond: 12 weeks
- Adoption / commissioning parent: 12 weeks
- Benefit paid by employer (offset for companies < 50 employees)
- Crèche requirement for companies with > 50 employees
- Covers ~5% of women (formal sector)
ICDS — Integrated Child Development Services
World’s largest early-childhood programme, launched in 1975:
- Network of 1.4 million Anganwadi Centres (community care centres)
- Services: nutrition, vaccinations, pre-primary education, healthcare
- Beneficiaries: ~100 million children 0–6 + 30 million pregnant/breastfeeding women
- Saksham Anganwadi programme (expanded 2021): digital modernisation
State programmes — Tamil Nadu, Kerala, Karnataka
- Tamil Nadu: “Kalaignar Magalir Urimai Thittam” — INR 1,000/month to female heads of household
- Kerala: family pensions for SC/ST families (~INR 1,600/month)
- Karnataka: “Gruha Lakshmi” — INR 2,000/month to female heads of household (since 2023)
- Telangana: “Aasara” — INR 2,016/month for vulnerable families
- Odisha: “Mamata” — INR 5,000/pregnant woman for 1st/2nd child
PM POSHAN — Mid Day Meal Scheme
School food programme run by Ministry of Education:
- Free hot meals for 118 million pupils classes 1–8 in public schools
- Balanced nutrition (450 cal for primary, 700 cal for middle school)
- Extended in 2022 to pre-primary (Bal Vatika)
- Combines federal + state funding
Per-child tax deduction
Under Section 80C of the Income Tax Act, deduction for:
- School fees (up to 2 children): deduction from taxable income
- Child life insurance premium: additional deduction
- 80C total cap: INR 150,000/year
- Section 80D health deduction: family health insurance premium (up to INR 25,000/year)
How Illizeo helps on the HR side
Illizeo is not a consulting firm or a paying body. However, our HR layer manages all of an employee’s family variables: family composition (dependent children, ages), supporting documents, event declarations (birth, adoption), leave workflows (maternity, paternity, parental) with key date calculations, and automatic feed to your payroll software.
Official sources
Manage the HR side of family allowances
From birth declarations to parental leave calculation, Illizeo centralises variables and feeds your payroll automatically.
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