There was talk of giving 30 days of gratuity to the salaried person instead of 15 days from April 1. But the government has made its stand clear in the house and has said that the government will not make any changes in these rules.
There is important news for the employed. The central government has categorically refused any change in gratuity. Minister of State for Labor and Employment Rameshwar Teli has said that the employees will get gratuity equal to the salary of 15 days of the year, there is no proposal to increase it to 30 days.
Minister of State replied
In fact, in the Rajya Sabha, the question was asked to the Minister of State for Labor and Employment, Rameshwar Teli, whether the gratuity scheme will be implemented for the private and contract workers of the public sector, who have worked for less than five years or not? On this, the Minister of State said that under the Social Security Code, 2020 (Code on Social Security, 2020), due to the termination of employment of an employee, death or disability or termination of employment for a certain period or due to any such event notified by the Central Government. If so, then it will not be necessary to complete 5 years of continuous service for gratuity. But the Social Security Code has not come into force yet.
What is Gratuity and how is it calculated
Let us tell you that gratuity is such a benefit that employees get under the Payment of Gratuity Act 1972. It is that part of the salary, which the company or employer gives to its employee in return for his years of services. Gratuity is given to the employee on behalf of the company on leaving or ending the job. Gratuity is calculated based on the formula of Year of Service x Last Salary x 15/26. For example, if an employee has worked for 30 years and his last salary was Rs 30,000, then he will get 30x30000x15/26 = Rs 519,230.7692 as gratuity.
