New Labour Code Grants Gratuity After One Year

New Labour Code Grants Gratuity After One Year

India’s new labour code allows employees to claim gratuity after just one year, instead of five. Gratuity is a reward for continuous service and can be calculated as: Last basic salary × (15/26) × Years of service. The 26 accounts for weekly holidays deducted from each month, making the calculation fair and standardised.