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New rule coming? You may soon be eligible for gratuity even without 5 years on the job

Source | economictimes.indiatimes.com | ET Online

With shorter job tenures increasingly becoming more common in India, the government is considering easing a key eligibility requirement for gratuity payment, Mint has reported.

Gratuity is paid by a company to an employee for the services rendered by him/her during the period of employment. The amount is generally equivalent to 15 days of pay for each year an employee has worked at a company.

Under current rules, an employee has to work for a company/organisation for five continuous years to be eligible for gratuity payment. According to reports, there is now a push in government circles to cut the five-year criterion to a shorter period — between one and three years.

Lately, various quarters have joined forces to push the issue in view of falling job security and rising number of contractual employees — two factors that often deprive many workers of gratuity payouts.

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Source
economictimes.indiatimes.com
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