The telecom group will offer at least 16 weeks maternity leave on full pay to all new mothers, including their employees in the United States.
And when they return to work, they'll be able to work slightly reduced hours on full pay for the first six months.
C-E-O Vittorio Colao said, "Too many talented women leave working life because they face a difficult choice between either caring for a newborn baby or maintaining their careers."
While the policy looks generous, Vodafone said it will actually help it save money.
A study, paid for by Vodafone, found global businesses could save up to 19-billion dollars a year if they adopted Vodafone's policy.