Gratuity New Rules: There is good news for the employees. In the new labor codes, there is going to be a big change regarding the gratuity to the employees. Under the new rules, the job requirement for gratuity will be reduced from 5 years to 1 year. Let’s know the latest updates.
Gratuity New Rules: There is great news for the employees. For labor reform in the country, the central government is going to implement 4 new labor codes soon. Minister of State for Labor Rameshwar Teli has given written information about this in the Lok Sabha. Many states have given their consent on different codes. After this, soon the central government can implement it.
Rules will change in new labor codes
Let us tell you that after the implementation of the new labor codes, there will be a change in the salary, leave, provident fund and gratuity of the employees. Under this, it is also possible to change the working hours and week rules. After that, there will be no compulsion for the employees to work continuously for 5 years in any institution for gratuity. The government has not announced it yet, but this rule will come into force as soon as the new labor law is implemented.
Know how much Gratuity is available?
At present, under the rule of gratuity, gratuity is made only after completing 5 years in any institution. Under this, the calculation of gratuity is done on the basis of your salary in that month on the day you leave the company after the completion of 5 years. For example, if an employee worked in a company for 10 years and in the last month, 50 thousand rupees come in his account. Now if his basic salary is 20 thousand rupees. 6 thousand rupees is the Dearness Allowance. Then his gratuity will be calculated on the basis of 26 thousand (Basic and Dearness Allowance). Working days are considered to be 26 in gratuity, according to this, let’s see the calculation
26,000 / 26 i.e. 1000 rupees for a day
15X1,000 = 15000
Now if the employee has worked for 15 years, then he will get total 15X15,000 = 75000 rupees as gratuity.
Gratuity is mentioned in the Social Security Bill
According to our partner website Zee Business, let us tell you that in the 4 Labor Codes, information about the rule of gratuity has been given in Chapter 5 of the Social Security Bill, 2020. Actually, gratuity is a reward given to an employee by the company, which if an employee fulfills certain conditions of the job, then he is paid gratuity with a guarantee under the prescribed formula. A small part of the gratuity is deducted from the salary of the employee, and a large part is paid.
Gratuity will be available even on 1 year job?
According to the information given in the draft copy filed in the Lok Sabha, if any employee works for one year in any place, then he will be entitled to gratuity. The government has made this arrangement for fixed term employees i.e. those working on contract. If a person works on a contract with a company for a fixed period of one year, he will still get gratuity. Apart from this, only fixed term employees will get the benefit of Gratuity Act 2020.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
