Few months ago, the Government had said that there would be no change in the gratuity norms.
Here’s what you need to know about the Gratuity scheme. Gratuity is a benefit that is payable under the Payment of Gratuity Act 1972. Gratuity is a sum of money paid by an employer to an employee for services rendered in the company. But, gratuity is paid only to employees who complete five or more years with the company.
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When asked by Rameshwar Teli, a minister of state for labour and employment, in the Rajya Sabha in March of this year "Whether Government is considering to increase the Gratuity payment from 15 days’ salary for each completed year to 30 days’ salary for all employees of Government sector and Private sector”? He responded that employees will receive gratuity equal to 15 days of income in a year and that there is no proposal to enhance it to 30 days.
In his other reply on the question on "whether Government is considering to implement the Gratuity Scheme to the Private and Contract workers of Public Sector even if they have completed one year as they may not complete 5 years services and if so, the details thereof," Teeli said that it will not be necessary for certain aspects.
"Under the Code on Social Security, 2020, completion of continuous service of five years shall not be necessary for payment of gratuity, where the termination of the employment of any employee is due to death or disablement or expiration of fixed term employment or happening of any such event as may be notified by the Central Government. However, the Code has not yet come into force," responded Teeli.
