The eligibility for gratuity has been updated under the new labour codes in India, allowing workers to claim this benefit after just one year of service. This change is expected to increase accessibility to post-employment benefits for millions of workers in the formal sector.

Changes to Gratuity Eligibility

Previously, workers were required to complete a minimum of five years in service to qualify for gratuity. However, the revised rules now enable employees to claim gratuity after only one year of continuous service. This shift aims to provide financial support to employees who leave their jobs after a shorter duration.

According to a report by NDTV Business (Profit), this amendment is part of a broader effort to improve workers' rights and benefits in India. The new regulations are anticipated to benefit a significant number of employees across various industries, making it easier for them to receive gratuity payments upon termination of their employment.

Implications for Workers

The change in gratuity eligibility is seen as a positive development for many workers who may not have previously qualified for this benefit. It is particularly relevant for younger employees or those in temporary positions who often change jobs within a year. By reducing the waiting period for gratuity claims, the new labour codes aim to enhance job security and financial stability for workers in the formal sector.

Overall, this revision in gratuity eligibility reflects a shift towards more inclusive labour policies in India, ensuring that a larger segment of the workforce can access essential post-employment benefits.