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.
