Gratuity payment rules: The central government has made a big change in the rules of the gratuity payment of employees. As per the changed rules, provision for payment of gratuity has been made for fixed-term employees. There will be no minimum service tenure for this. For the first time, an employee who is working for a specified period is given the right to social security like a regular employee.
Fixed term refers to the employees working on the contract. During the introduction of the bill in the Lok Sabha, Labor Minister Santosh Gangwar said on bringing fixed-term employment into the IR Code, that the service conditions, salary, leave and social security of fixed-term employees will be the same as that of a regular employee. In addition, fixed-term employees have also been given the right to pro rata gratuity.
What is gratuity rules regarding gratuity in India?
Gratuity is the amount given to an employee on behalf of the institution or employer. An institution or employer must have an employee to work for at least five years. Usually, this amount is given when an employee quits the job or is removed from the job or he retires. In the event of the death of an employee due to any reason or leaving his job due to an accident, he or his nominee gets the amount of gratuity.
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The time limit for claiming gratuity in India 2020:-
The amount of gratuity is calculated under a certain formula. In fact, under the Payment of Gratuity Act, 1972, it benefits every employee of an institution where more than 10 employees work. If the employee changes the job, retires, or leaves the job due to any reason, but he meets the rules of gratuity, he gets the benefit of gratuity. For this, a minimum service of five years is mandatory.
According to the bill, gratuity will be paid to the employee for five consecutive years of service at the end of the job. It will be on retirement, retirement or resignation, death or disability from accident or illness. However, in the case of working journalists, it will be three years instead of five years.
Gratuity Calculator Formula:
Currently, gratuity is calculated on the basis of a fixed formula. Standards have been set in this. Understand its calculation.
Total gratuity amount = (last salary) x (15/26) x (how many years worked in the company).
How to Calculate Gratuity?
Suppose someone worked in a company for 6 years 8 months. His basic salary while leaving the job was 15000 rupees a month. In such a situation, according to the formula, the amount of his gratuity will come out in this way. 15000x7x15 / 26 = 60,577 rupees
If someone worked in the company for 6 years 8 months. His basic salary while leaving the job was 15000 rupees a month. This company does not come under the purview of the Act, in such a situation, according to the formula, the amount of gratuity will come out in this way.
15000x6x15 / 30 = 45,000 rupees (those who are not in the act will get 15,577 rupees less than the employees coming in the act).