The new Labor Bill was approved by the Rajya Sabha to provide facilities to both organized and unorganized workers in the country. Employed people will benefit from this law. Now people employed in gratuity will not have to wait for five years. Gratuity can be found in one year instead of five years.
Currently, to get the benefit of gratuity, it is necessary to work at least five years in the same company. As per the new provisions, now employees working on contract basis will get the benefit of gratuity along with their salary, irrespective of the duration of the contract.

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. If you understand in easy language, then the 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. This rule will also be applicable to the employees working on the contract.

Explain that gratuity is given by the company to its employees. For this, it is necessary to be employed in the same company for 5 consecutive years. However, in case of death or disablement, it is not necessary to complete 5 years of the job to be given gratuity amount. The maximum limit of gratuity is 20 lakh rupees.

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 Rahul worked in the same company for 7 years. Rahul's final salary is Rs 35000 (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 Rahul will be paid Rs 1,41,346.