A recent study by ProEves found that about three-fourths of organisations fund more than 50% of child daycare costs to working parents, positioning themselves as either equal or primary contributors.
Also, close to 65% of organisations outsource childcare management to third-party partners, reflecting a preference for operational ease, compliance assurance and scalability.
The study titled ‘Unlock Clarity on Childcare Compliance in Organizations’ further found that around 11% of the companies fund between 20% and 40%, while another 16% contribute between 40% and 50% of the childcare fee. The dominant trend, however, remains employers covering a majority share of the cost.
In terms of monthly financial support, 56% of organisations provide between Rs. 10,000 and Rs. 20,000 per child, making it the most common funding bracket. Around 40% cap support is between Rs. 5,000 and Rs. 10,000, while a small 4% exceed Rs. 20,000 per child per month
The study notes that this upward shift in funding is closely linked to rising daycare costs, particularly in metro cities such as Bengaluru, Delhi NCR and Mumbai, where utilisation of childcare benefits is highest.
According to the study, a majority of organisations are moving away from fixed, office-linked crèche arrangements to more flexible “near-home or near-office” childcare options. This approach allows employees to choose daycare centres either close to their workplace or their residence, reducing employer liability while offering greater autonomy to working parents.
By transferring the decision-making to employees, organisations are limiting their exposure compared to traditional employer-selected crèche models, where responsibility rests more heavily with the company.
Further, the study highlights a gradual move towards gender-neutral childcare benefits. About 64% of organisations now extend childcare support to fathers or plan to do so in the near future
A smaller 5% restricts the benefit to single fathers, while 31% continue to limit eligibility largely to working mothers, citing the benefit’s origins in maternity legislation and indicating that broader inclusion may follow over time.
Industry-wise, service-oriented sectors, including IT services, retail and telecom, tend to offer support in the Rs. 5,000 to Rs. 10,000 range. Meanwhile, FMCG, BFSI, IT product firms and e-commerce companies are more likely to fall into the higher Rs. 10,000 to Rs. 20,000 bracket. The data indicates a clear progression over time, with organisations steadily moving towards higher funding limits compared to earlier years.
