Creche Obligations for Employers under the Labour Codes
Establishments that cross fifty employees or workers now carry a creche obligation under two different labour codes at once. This guide maps what triggers the duty, when a creche allowance can stand in for a physical facility, and who is actually entitled to use the benefit.
Based on analysis by Asish Philip, Astha Sinha, Priyanshi Rachchh and Rishita Sethi.
Covers India's Code on Social Security, 2020, the Occupational Safety, Health and Working Conditions Code, 2020, the Social Security (Central) Rules, 2026, and the Ministry of Labour and Employment FAQs of 16 March 2026. Position stated as of 13 August 2026.
How the duty reached the codes
The creche requirement began in the Factories Act, 1948, as a facility for women working in factories. The Maternity Benefit (Amendment) Act, 2017 widened it beyond factories by inserting Section 11A into the Maternity Benefit Act, 1961, making it a general statutory obligation on covered establishments. The labour codes then split that inheritance across two enactments: Section 67 of the Code on Social Security, 2020 and Section 24 of the Occupational Safety, Health and Working Conditions Code, 2020. The wording largely reproduces the earlier law, but the placement of each provision changes how the duty reads.
Two codes, two triggers
Under Section 67 of the SS Code, any establishment with fifty or more employees must provide a creche within a distance the Central Government prescribes, separately or as part of common facilities. The threshold counts employees without reference to gender, but the section sits inside Chapter VI, the maternity benefit chapter, whose definitions and duties are framed around women employees.
Under Section 24 of the OSH Code, the appropriate government may require establishments employing more than fifty workers to provide creche facilities. This provision sits in the welfare chapter, not the maternity chapter, and covers factories, mines, plantations, building and construction establishments, beedi and cigar manufacturing premises, motor transport undertakings and dock work establishments.
| Parameter | OSH Code | SS Code |
|---|---|---|
| Eligibility threshold | 50 workers | 50 employees |
| Applicability | Factories, mines, plantations, building and construction work establishments, beedi and cigar manufacturing premises, motor transport undertakings, dock work establishments | All establishments |
| Benefit | Creche at premises or within prescribed vicinity | Creche facility, or creche allowance in lieu (minimum INR 500 per month per child, subject to collective agreement under IR Code Section 14) |
The allowance substitute
The Social Security (Central) Rules, 2026 let an employer pay a creche allowance instead of running a facility. The substitution is not the employer's unilateral choice: it requires an agreement with the negotiating union or negotiating council, and where neither exists, with a majority of the employees. The Rules extend allowance eligibility to widowers and single parents with children below six years of age. The single integrated annual return filed under the four codes treats the allowance as an alternative to the facility under both codes.
Who can actually use the benefit
The Ministry of Labour and Employment's FAQs of 16 March 2026 state that the creche facility is available to employees irrespective of gender, and the OSH Code's welfare framing supports that reading. The SS Code pulls the other way: its creche provision lives in the maternity chapter, and the allowance that substitutes for the facility is available only to women employees, widowers and single male parents.
The authors' harmonious construction resolves the tension this way: the OSH Code prescribes the facility as a workplace welfare standard once the headcount is met, while the substantive entitlement to use it flows from the SS Code's social security framework, which points primarily to women employees and the expressly named categories. Until a court or a further clarification settles the point, employers should treat the facility duty as headcount-triggered at establishment level, and treat access and the allowance as governed by the SS Code's narrower entitlement classes.
What an employer should check now
- →Count both measures: fifty employees for the SS Code, more than fifty workers for the OSH Code's sectoral list.
- →Identify which code reaches the establishment; many establishments fall under both.
- →A creche allowance in place of a facility needs the collective agreement route under the Rules; without it the physical facility obligation stands.
- →The allowance classes are fixed by the Rules: women employees, widowers, single parents with children below six.
- →The integrated annual return records the allowance as the facility's alternative under both codes.
Frequently asked questions
Does the creche obligation depend on the gender composition of the workforce?
No. The Ministry of Labour and Employment's FAQs of 16 March 2026 state the facility is available to employees irrespective of gender. The threshold counts total headcount, not the number of women employed.
Can an employer pay an allowance instead of maintaining a creche?
Yes, under the Social Security (Central) Rules, 2026, but only through an agreement with the negotiating union or negotiating council, or with a majority of employees where no such body exists.
Who is eligible for the creche allowance?
The Rules name women employees, widowers and single parents with children below six years of age. It is not available to male employees generally.
Which establishments does the OSH Code's creche duty cover?
Factories, mines, plantations, building and construction establishments, beedi and cigar manufacturing premises, motor transport undertakings and dock work establishments employing more than fifty workers, where the appropriate government so requires.
This page synthesises the statutory position examined in detail by the authors. Their full analysis of whether the creche benefit extends to all employees or remains tied to the maternity framework was published on Bar and Bench.
Read the authors' full analysis on Bar and Bench