Employer-Provided Childcare: Rising Demand in India

The challenges of balancing work and childcare responsibilities have become increasingly apparent, especially in the wake of the new normal. With remote schooling and daycare labour shortages, many parents are seeking solutions that allow them to fulfil their work commitments while caring for their children. One solution gaining traction is employer-provided childcare, also known as employer-sponsored childcare or dependent care assistance.

What Is an Employer-Provided Childcare?

Employer-provided childcare entails the employer covering some or all of an employee's childcare costs, either directly through on-site facilities or indirectly through partnerships with external providers. This initiative not only supports employees in managing their family obligations but also enhances employee retention, satisfaction, and overall work-life balance.

The Need for Employer-Provided Childcare in India

Achieving a healthy work-life balance is particularly challenging for working parents in India. Research indicates that parents with young children have lower participation rates in the workforce compared to those without children. Unfortunately, many Indian companies overlook childcare provisions, leading to gender disparities in workforce participation. Key factors driving the need for employer-sponsored child care in India include:

  1. Limited Availability of Affordable Childcare: Access to affordable childcare facilities is scarce, especially in areas with a high cost of living.  
  2. Rising Number of Working Parents: With more parents entering the professional workforce, there is a growing demand for reliable childcare solutions.   
  3. Work-Life Balance Challenges: Without adequate childcare support, parents face burnout, stress, and reduced productivity trying to balance work and childcare responsibilities.

By addressing these challenges faced by working mothers, employer-sponsored childcare initiatives can contribute to creating a more supportive, productive, and inclusive work environment in India.

Benefits for Employers Providing Childcare Support

Employers offering childcare support enjoy several benefits, including:

  1. Increased Productivity and Engagement: Convenient and affordable childcare options enable employees to manage their work and family responsibilities effectively, leading to higher productivity and engagement levels.
  2. Enhanced Talent Retention and Attraction: Employers that prioritise childcare needs are more likely to attract and retain top talent, fostering loyalty among employees.   
  3. Reduced Absenteeism and Turnover: Access to reliable childcare services reduces absenteeism due to unexpected disruptions and minimises turnover rates among employees.

Employer-Provided Childcare Models

Depending on organisational resources and needs, employer-provided childcare can take various forms, such as:

  1. On-Site Childcare Centers: Employers can establish and operate childcare facilities within the workplace premises, offering convenience for employees.

    Also Read: Why On-site Childcare Facility Should Be Every Business' Priority in India.

  2. Subsidised Programs: Employers may collaborate with external childcare providers to offer discounted rates or vouchers to employees, making childcare more affordable.   
  3. Dependent Care Assistance Programs (DCAPs) or Flexible Spending Accounts (FSAs): These programs allow employees to allocate pre-tax dollars toward childcare expenses, easing financial burdens.

Consider Sunshine for Your Employer-Provided Childcare Needs!

Sunshine Preschool & Corporate Creche isn't just a childcare provider, it's sunshine for working parents and businesses! We offer a world-class creche facility in office and dedicated staff to ensure that your employees' childcare needs are met with excellence. Contact us to explore how Sunshine can help you establish employer-provided childcare facilities tailored to your organisation's requirements.


Amit Prasad

Amit Prasad is a Vice-Chairman & MD of Sunshine Preschool & Corporate Crèche . He conceptualized the preschool & corporate crèche model way back in 2005. He splits his time between his ventures, at Sunshine his focus is on strategy. Amit loves to travel to new places, play golf and read biographies.

Corporate Creche

Leave a Reply

Your email address will not be published. Required fields are marked *