Employees Gratuity: If you are an employee then you must read this news. Actually, according to a recent update, let us tell you that now those with a salary of Rs 25 thousand will get a gratuity of Rs 2,88,461.54. Let us tell you that the government is going to make another big change…
If you do a government or private job then it is very important for you to know about this important information. You must be aware about gratuity that gratuity is a reward given to the employee, which is given by the company in return for the work done by him for five or more years. When an employee serves or works in a company for a long time, he is paid a fixed amount by the company when he leaves the job after a fixed time limit.
This amount is called gratuity. In India, a minimum time limit of five years has been set for gratuity, that is, if an employee works in a company for five years, then he is given gratuity as a reward by the company on leaving the job.
If there are 10 or more employees working in a company, then it is mandatory for the company to pay the amount as gratuity to its employees. Both government and private companies come into this. Along with this, shops and factories are also included in its scope. Before applying for gratuity, you must check whether your company is registered under the Gratuity Act or not. Because if your company is registered then it will have to pay you gratuity as per the rules, but if the company is not registered then whether to pay gratuity or not depends on the wish of the company.
The minimum time limit for gratuity in India is 5 years. If an employee has worked in the company for 4 years and 8 months, then it will be considered only five years. But if the employee has worked in the company for 4 years and 7 months then it will be considered as 4 years. In such a situation the employee cannot take gratuity.
In this, the notice period will be counted as days of employment. Whereas if an employee dies before retirement or leaving the job, then the company will have to pay gratuity to the employee’s nominee. The minimum time limit rule will not apply here.
Rule to calculate gratuity-
A rule to calculate gratuity is (final salary) x (number of years worked in the company) x (15/26). 4 Sundays in a month are not counted as week off, due to which only 26 days are counted in a month and gratuity is calculated on the basis of 15 days. For example, a person has worked in a company for 20 years and his last salary is around Rs 25,000, then we will apply this formula to find out the amount of his gratuity. According to this formula, the amount of gratuity of the person will be 20x25000x15/26 = Rs 2,88,461.54.
Government may bring new labor code bill in the country-
The Central Government is preparing to implement the new Labor Code in the country soon. After the implementation of these new labor codes, there will be major changes in the rules related to salary, holidays, provident fund, gratuity of employees working in private and government departments and companies.
Employees retiring or changing jobs will benefit the most because the time limit of 5 years fixed in the gratuity rules can be reduced to one year. This means that now even employees who change jobs after one year can get gratuity.
