Major decision under new labor laws: Employees to receive a monthly creche allowance of up to ₹1,000 for up to two children.

Creche Allowance: The government has made significant provisions for working parents under the new labor code. Working parents with children under the age of six will be provided a creche allowance of ₹500.

New Labor Rule: The Central Government's new labor code offers significant relief to employees with children. The government is working on a plan to provide creche facilities for employees' children. However, the new code stipulates that if creche facilities are not provided, employees will receive ₹500 per month instead.

In many families, both parents work, which often creates challenges regarding childcare. To address this issue faced by employees, the government is introducing creche facilities.

Employees across various companies and institutions will have the opportunity to benefit from this new rule. The creche allowance aims to ensure proper care for children. Under this rule, a minimum of ₹500 per month will be provided for the child. Widows and single parents are expected to be the primary beneficiaries of this rule.

What is the creche allowance rule?

According to Rule 37(VIII)(b) of the new labor code, if a female employee is a widow or a single parent and has children under the age of six, the company must provide creche facilities for them. The government has clearly stated that an allowance of ₹500 per month will be provided for each child. It is reported that the Central Government may revise this amount in the future.

It is worth noting that this allowance applies to employees or workers with two children. Even if a woman gives birth to twins on her second delivery—thereby exceeding the two-child limit—she will still be eligible to avail the benefits of this new rule.

Which companies will this rule apply to? This rule has been implemented under the Occupational Safety, Health and Working Conditions (OSHWC) Central Rules, 2026. It applies to sectors such as railways, oil, air transport services, telecommunications, mining, banking, and insurance.

Another important update for employees:

According to experts, this rule has been formulated for employees of both the central and state governments. It will provide significant relief to employees who are parents.