The impending implementation of India's Social Security Code is sharpening the corporate focus on employee childcare benefits, compelling companies nationwide to evaluate both regulatory compliance and associated costs. A recent exclusive survey reveals a significant trend: even before the Code becomes active, a majority of businesses are proactively increasing their financial commitment to support working parents.
Survey Highlights Major Shift in Corporate Spending
The survey, conducted by ProEves, a leading aggregator for daycare and preschool services, indicates that 60% of companies have now allocated higher budgets for childcare and daycare facilities. This figure represents a doubling of investment compared to just three years ago. Childcare has now risen to become one of the top human resources support practices for working parents, ranking above additional paid leave and flexible work arrangements in priority for many organizations.
Code Mandates and Corporate Strategy
The Social Security Code, notified in late November 2025, mandates employers to provide crèche facilities adhering to Central government guidelines. These facilities must be located within a 500-metre radius of either the employee's workplace or residence. Crucially, this provision is gender-neutral, applying to all employees. However, industry experts note that the corporate response is driven by more than just compliance.
Ketika Kapoor, CEO of ProEves, stated that the prevalence and budget for daycare benefits in India have grown multifold. "The Code illustrates a genuine effort by the government to remove childcare as a barrier to parents' and women's participation in the workforce," she said, adding that it strengthens the existing crèche clause from the Revised Maternity Benefit Act of 2017.
From Compliance to Competitive Advantage
Human resources professionals emphasize that employer-supported childcare is evolving into a critical strategic tool. It is increasingly seen as essential for retaining talent, promoting diversity, and enhancing overall productivity. The financial data underscores this shift: in 2022, the median monthly corporate spend on daycare was between ₹5,000 and ₹9,999 per child. This amount has now doubled, reflecting the increased value placed on this benefit.
Govindraj MK, Chief Human Resources Officer at Myntra, highlighted their long-standing commitment, "Supporting our workforce with the right environment has always been central to our people’s philosophy. We have long offered free in-house creche facilities at our Bengaluru and Gurugram offices, along with childcare reimbursement for those using external day-care services."
The survey, which covered 100 companies across IT, banking, financial services, insurance (BFSI), fast-moving consumer goods (FMCG), manufacturing, and services sectors, shows a widespread change in policy. Neha Nambiar, HR head at IIFL Capital, noted their gender-agnostic approach, acknowledging shared caregiving responsibilities. "Our continued focus has been on providing greater flexibility and accessibility to parents. Between 2023 and 2025, our childcare budgets have grown by nearly 1.5 times," she explained.
The Road Ahead for India Inc
As the formal rollout of the Social Security Code approaches, the corporate landscape in India is adapting rapidly. The move towards comprehensive childcare support is no longer viewed merely as a statutory obligation but as a fundamental component of a modern, inclusive, and attractive workplace. This strategic investment is poised to play a defining role in shaping India's future of work, directly impacting employee well-being, gender parity, and organizational success.
