Gratuity New Rules: The central government may soon implement 4 new labor laws for labor reforms in the country. In this regard, Minister of State for Labor Rameshwar Teli has given written information in the Lok Sabha.Â
After the implementation of the new labor law, there will be a change in the salary, leave, provident fund and gratuity of the employees. After the implementation of these laws, the obligation of working for 5 consecutive years in any institution for gratuity will end. However, so far no formal announcement has been made by the government on this. But, it is certain that this system will be implemented as soon as the new labor law is implemented.Â
How much gratuity do you get now?
According to the rules related to gratuity, gratuity is available on completion of 5 years in any institution. Gratuity is calculated on the basis of your Basil salary for the month on which you leave the company on completion of 5 years. For example A worked in a company for 10 years.
In the last month, 50 thousand rupees had come in A’s account. In this his basic salary is 20 thousand rupees. 6 thousand is his dearness allowance. Gratuity will be calculated on the basis of 26 thousand (basic and dearness allowance). 26 working days are considered in gratuity. Now divide 26 thousand by 26.
The result turned out to be Rs 1000. Now it has to be multiplied by 15 days because it is added to the number of 15 days in a year. The result will be 15000. If he worked for 5 years, then he would get total 75000 rupees as gratuity. mention of gratuity in social security bill The rules for gratuity have been given in Chapter 5 of the Social Security Bill, 2020.
Apart from salary, pension and provident fund, gratuity is also given to the employees who have worked for a long time in the same company. Gratuity is a reward given to the employee of the company. If the employee fulfills certain conditions of the job, then he is paid guaranteed gratuity as per the prescribed formula. A small part of the gratuity is deducted from the employee’s salary, but the company pays a major portion.
Gratuity can be given even on 1 year job
According to the information given in the draft copy filed in the Lok Sabha, if an employee works in any place for one year, 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. The contract worker is now being given the right of social security like a regular employee. Apart from contract employees, those working in seasonal establishments will also get the benefit of this.
Who will benefit from Gratuity Act 2020?
The benefit of Gratuity Act 2020 will be available only to fixed term employees. The Old Testament will continue for others as well. At present, gratuity is fixed on the basis of 15 days’ salary every year on completion of five years of service. Gratuity is given to the employees by the company. Its maximum limit is 20 lakh rupees.
