How Indian companies are becoming more childcare-friendly for employees

India Inc has seen a significant rise in childcare and parental benefits as companies increasingly recognize the importance of supporting working parents. A recent survey shows that structured daycare benefit plans, once uncommon, are now implemented by 90% of companies surveyed—up from 30% in just two years, a TOI report stated. These changes align with the Maternity Benefit (Amendment) Act of 2017, which mandates daycare facilities for employers with over 50 employees.

Rising Adoption of Daycare Programs

The survey, which analyzed 52 companies across FMCG, BFSI, manufacturing, services, and IT/ITES sectors, revealed that corporate spending on daycare support has grown notably. "Daycare benefit is no longer just a policy on paper," said Ketika Kapoor, founder of Proeves, a leading daycare and preschool aggregator. "Companies are going beyond legal requirements by offering flexible daycare options, subsidies for daycare fees, and extending benefits to all working parents, not just mothers."

In 2017, 85% of surveyed companies did not allocate budgets for daycare. By 2022, only 17% of companies had not yet incorporated daycare-related funding. Approximately 70% activated daycare programs as part of return-to-office campaigns to support parents rejoining the workforce post-pandemic.

Enhanced Parental Policies

Some companies are expanding their daycare provisions beyond legal mandates. For instance, Sanofi offers 75% of the annual daycare fee and 50% of monthly daycare fees for up to three children aged six months to 10 years, exceeding the law's six-year age cap. "Sanofi also offers 14 weeks of paternity leave, well above industry norms, alongside equal parental leave for new parents of any gender," said Surabhi Kaul, Sanofi India’s director of people and culture.

Other companies, such as Meesho, are embedding inclusivity into their policies. "We prioritize a people-centric workplace that evolves with our employees' needs. Our Childcare Benefits and Parental Wellness Programme reflects this commitment," said Ashish Kumar, CHRO at Meesho. Similarly, Fidelity Investments offers flexible daycare policies for children up to six years, available to employees of all genders.

Modest but Growing Budgets

While most surveyed companies allocate 0-5% of their HR budgets to daycare expenses, the rising focus on mature benefits indicates a broader shift in workplace priorities. This marks a move away from millennial-centric perks towards family-oriented support systems, reflecting evolving employee needs.

India Inc’s growing commitment to childcare benefits suggests a shift toward holistic employee well-being, emphasizing work-life balance and inclusivity. These policies not only fulfill legal mandates but also enhance employee engagement, retention, and overall productivity.