Hello HRs, Please tell me calculation of gratuity as per new labour code
From India, Surat
Dear Vasmin,

I would better request you kindly to go through the entire Code on Social Security,2020 so that you can clear your doubts on not only gratuity but also other social security measures like EPF, ESI etc., on your own.

Anyway, let me answer your query in a nut shell as follows:
Chapter V of the CSS,2020 covers the entire provisions of gratuity under sections 53 to 58.
No major changes except proportionate gratuity to fixed term workers on the actual length of service rendered.
The calculation of gratuity u/s 53 (2) shall be on the basis of the ' wages' as defined u/s 2(88) of the Code. The formula is similar to the present formula of the sum of basic and D.A subject to the proportionate addition of other allowances excluded in the case of short fall of the sum being less than 50% of the gross monthly wages.
Detailed explanation on continuous service has been given u/s 54 of the Code.

From India, Salem

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.

Please Login To Add Reply

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 CiteHR.Comô

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server