New Delhi: It has often been seen that people employed in the private sector only stay in the same company for five consecutive years waiting for gratuity. Or if for some reason they had to leave the job or missed, then they do not get the benefit of gratuity. There is no need to do this now.
The employees in private sector work in a company upto five year as the gratuity is offered after five years. In case you leave the job or lost it the gratuity can not be avail, hence the benefits cannot be enjoyed. This will be no more applicable as the new Labour Bill of the Central Government has got the approval of both House. After this approval, now the 5-year limit for taking gratuity will be ended.
In other words, company will give you gratuity every year. According to the rule, till now, the employee was required to work for 5 consecutive years in any one company. However, in the new provisions people having jobs on fixed term basis will receive gratuity every year. On the basis of days also the gratuity will be provided. This means that the employees working on the contract will also be able to take advantage of gratuity, irrespective of the duration of the contract.
Gratuity is given by the company to its employees. It is a gratitude expressed towards the employee in return of the services towards the company. The maximum limit is 20 lakh rupees. However, in case of death or disablement, it is not necessary to complete 5 years of the job to be given gratuity amount.
How it is calculated?
Total gratuity amount = (last salary) x (15/26) x (how many years worked in the company).
For instance, Sudhir worked in the same company for 7 years. Sudhir’s final salary is 35000 rupees (including basic salary and dearness allowance). So the calculation will be something like this- (35000) x (15/26) x (7) = Rs. 1,41,346
This means that Sudhir will be paid Rs 1,41,346.