Possibility of notification soon
According to the media report, this government can soon issue a notification on this decision. The proposal to make gratuity a part of CTC has been discussed in the meeting of Union Ministry of Labor and Industry. This provision will be included in the Social Security Act. However, the industry has not agreed to extend the working days on this. The industry has not agreed to the proposal of 15 to 30 working days for gratuity.
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As we know people change jobs many times in their life due to one or the other reason. Especially in the private sector, it is seen that if a person is working in this company today, then after a few days or a few years, it is seen in another company or institution. In such a situation, along with changing the institution, his PF also keeps on transferring, but the amount of gratuity is not transferred, now there can be a chance of gratuity transfer like PF if you change the company. In such a situation, millions of crores of employees working in the private sector will get relief.
What is employee gratuity
An employee becomes entitled to gratuity after working for 5 years or more in any company. Under the Payment of Gratuity Act 1972, a company is required to pay gratuity to its employee but private sector employees do not know about it and hence cannot receive payment.
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When does the employee get the gratuity payment
– To the retiring employee.
– An employee working in the same company for a minimum period of 5 years or more, if he leaves the job or is removed from the job.
– In case of death or disability due to sick or accident.
How is gratuity calculated
If a person has worked in the same company for 20 years. His last salary is 75000 rupees (basic and DA) inclusive. Here 26 days in a month are counted, because 4 days is a holiday. At the same time gratuity calculation is done on the basis of 15 days in a year. Total gratuity money – 75000 rupees x (15/16) x 20 = 865385 rupees.