5-Year Wait For Gratuity Is Over, Big Gift To Employed People

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. Actually, the new Labor Bill of the Central Government has got the approval of the House. After this approval, now the 5-year limit for taking gratuity is over.

It has been told in the new provisions that people who will get jobs on fixed term basis. They will also have the right to get gratuity on the basis of that day. 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. In a way, it is expressed by giving the employee in return for the service given to the company. Its 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 is the amount calculated Total gratuity amount

= (last salary) x (15/26) x (how many years worked in the company). Understand by example Suppose that Ram Gopal worked in the same company for 10 years. Ram's final salary is 26000 rupees (including basic salary and dearness allowance).

So the calculation will be something like this-

(26000) x (15/26) x (10) = Rs. 1,50,00 This means that Ram Gopal will be paid Rs 1,50,000.

Also, Read: "CBDT Has Notified New Income Tax Return".