Eligibility for Gratuity Under the New Wage Code 2021
As the new wage code 2021 is set to commence on April 1st, 2021, can it be concluded that employees who leave the organization after April 1st, 2021, become eligible for the payment of gratuity without completing the period of 4 years and 240 days but have served for a 1-year duration?
Calculation Formula for Gratuity
If yes, will the formula currently used for the calculation of the amount remain the same, or have some changes been proposed in that as well?
Regards
From India, Nagpur
Acknowledge(0)
Amend(0)
As the new wage code 2021 is set to commence on April 1st, 2021, can it be concluded that employees who leave the organization after April 1st, 2021, become eligible for the payment of gratuity without completing the period of 4 years and 240 days but have served for a 1-year duration?
Calculation Formula for Gratuity
If yes, will the formula currently used for the calculation of the amount remain the same, or have some changes been proposed in that as well?
Regards
From India, Nagpur
Acknowledge(0)Amend(0)
Dear Abhishek,
I would like to request you to kindly go through the provisions of sec. 53 of the Code on Social Security, 2020, along with a combined reading of sec. 54, which deals with continuous service for the purpose of gratuity. This is almost similar to the definition of the term "continuous service" as found in sec. 2-A of the Payment of Gratuity Act, 1972.
Prominent Changes in Gratuity Under the Code
However, the prominent changes pertaining to the minimum qualifying service for gratuity under the Code are the following:
A) The minimum qualifying service or continuous service is:
- Three (3) years in respect of working journalists as defined under section 2(f) of the WJ&ONPE Act, 1955.
- The completion of continuous service of five years shall not be necessary in respect of the expiration of fixed-term employment.
B) No change in the formula for the calculation of gratuity.
From India, Salem
Acknowledge(0)Amend(0)
6108I would like to request you to kindly go through the provisions of sec. 53 of the Code on Social Security, 2020, along with a combined reading of sec. 54, which deals with continuous service for the purpose of gratuity. This is almost similar to the definition of the term "continuous service" as found in sec. 2-A of the Payment of Gratuity Act, 1972.
Prominent Changes in Gratuity Under the Code
However, the prominent changes pertaining to the minimum qualifying service for gratuity under the Code are the following:
A) The minimum qualifying service or continuous service is:
- Three (3) years in respect of working journalists as defined under section 2(f) of the WJ&ONPE Act, 1955.
- The completion of continuous service of five years shall not be necessary in respect of the expiration of fixed-term employment.
B) No change in the formula for the calculation of gratuity.
From India, Salem
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
FORM.V-format WAGE SLIPS (Rule 39-CODE ON WAGES RULES 2021).docx
Minimum Wage Increase w.e.f. 01.07.2021.pdf
Payment of Gratuity Act, 1972 & The Rules.ppt