• Latest
  • Trending
  • All
  • Sport
  • Cricket
  • Odisha
Employees Will Now Be Eligible For Gratuity After One Year In Service

Employees Will Now Be Eligible For Gratuity After One Year In Service

10 months ago
Ganesh puja pandal gutted in fire

Ganesh Puja Pandal Reduced To Ashes In Major Fire At Odisha’s Sambalpur

3 hours ago
Vimal Elaichi ad

High Court Rejects Vimal Elaichi Plea Over FDA Notices To Shah Rukh, Ajay Devgn, Tiger Shroff

3 hours ago
Kejriwal Visits Goa Forward Party Chief’s Home For Ganesh Puja Day After ‘Goa First’ Alliance Launch

Kejriwal Visits Goa Forward Party Chief’s Home For Ganesh Puja Day After ‘Goa First’ Alliance Launch

3 hours ago
Three Indian-Origin Italians Leave India Without Immigration Checks; AI Showcaused

Three Indian-Origin Italians Leave India Without Immigration Checks; AI Showcaused

3 hours ago
Gymnasts to represent India

Odisha AM/NS India Gymnastics HPC Trio Selected For Asian Games & FIG World Challenge Cup

4 hours ago
I Am Sorry, Didn’t Know A Girl Was On The Bike, Says Gurugram Hit & Run Accused

I Am Sorry, Didn’t Know A Girl Was On The Bike, Says Gurugram Hit & Run Accused

4 hours ago
‘Khatron Ke Khiladi 15’: Gaurav Khanna Breaks Down In Tears, Quits Show To Save Ruhaanika Dhawan

‘Khatron Ke Khiladi 15’: Gaurav Khanna Breaks Down In Tears, Quits Show To Save Ruhaanika Dhawan

4 hours ago
Tree Ganesh Puja

Bakul Foundation’s Tree Ganesh Puja Demonstrates Eco-Friendly Celebration & Deeper Bond With Nature

4 hours ago
Hockey: Men’s Asian Champions Trophy To Make A Comeback In Punjab From Oct 27 To Nov 5

Hockey: Men’s Asian Champions Trophy To Make A Comeback In Punjab From Oct 27 To Nov 5

4 hours ago
‘Kabhi Kabhi Selection Mein Kami…’: Salman Khan Addresses ‘Boring’ Contestant Line-Up On ‘Bigg Boss 20’

‘Kabhi Kabhi Selection Mein Kami…’: Salman Khan Addresses ‘Boring’ Contestant Line-Up On ‘Bigg Boss 20’

5 hours ago
S Satyapragyan

Chess Olympiad For People With Disabilities: Team India, Coached By Odisha IM Satyapragyan, Begin Well

5 hours ago
‘Hanuman Ansh’ Director Vishal Chaturvedi Announces His Next Film On Tulsidas

‘Hanuman Ansh’ Director Vishal Chaturvedi Announces His Next Film On Tulsidas

5 hours ago
  • Home
  • About us
  • Career
  • Contact
  • Privacy Policy
  • Terms of Usage
Tuesday, September 15, 2026
No Result
View All Result
OdishaBytes
  • Home
  • Odisha
    • Policy & Politics
    • City
  • India
  • Sport
    • Cricket
    • Football
    • Hockey
    • IPL
  • Entertainment
    • Music
    • Movie Review
    • Television
    • Bollywood
    • Hollywood
    • Ollywood
  • Business
  • Lifestyle
    • Travel
    • Food
    • Health
    • fashion
  • World
  • More
    • News You Can Use
    • Good News
    • Viral Videos
    • Tech
      • Cars & Bikes
      • Mobile & Gadgets
      • Review
  • Home
  • Odisha
    • Policy & Politics
    • City
  • India
  • Sport
    • Cricket
    • Football
    • Hockey
    • IPL
  • Entertainment
    • Music
    • Movie Review
    • Television
    • Bollywood
    • Hollywood
    • Ollywood
  • Business
  • Lifestyle
    • Travel
    • Food
    • Health
    • fashion
  • World
  • More
    • News You Can Use
    • Good News
    • Viral Videos
    • Tech
      • Cars & Bikes
      • Mobile & Gadgets
      • Review
No Result
View All Result
OdishaBytes
No Result
View All Result
Home India

Employees Will Now Be Eligible For Gratuity After One Year In Service

by OB Bureau
November 22, 2025
in India
Reading Time: 2 mins read
Employees Will Now Be Eligible For Gratuity After One Year In Service

Oplus_131072

491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

New Delhi: Employees will now be eligible to receive gratuity after completing just one year of service instead of the earlier mandatory five-year requirement, the government has announced while overhauling India’s labour laws.

The Centre, on Friday, brought into place four simplified labour codes, merging 29 legislations that existed.
Union labour minister Mansukh Mandaviya has said that the restructuring aims to provide better wages, wider social security, improved working conditions and stronger health-related safeguards for workers across all sectors.

ADVERTISEMENT

The reforms concern fixed-term employees (FTEs), who would be eligible for gratuity after completing only one year of service with an organisation. This marks a significant departure from the previous provision under the Payment of Gratuity Act, which mandated a minimum of five continuous years of service for eligibility.

An FTE is one hired under a contract with a predetermined end date or tied to the completion of a specific task or project. The labour ministry clarified that the reform is intended to ensure parity between fixed-term and permanent employees. With this change, fixed-term workers will now receive the same salary structure, leave facilities, medical benefits and social security protections as regular staff.

The government believes that reducing the gratuity tenure will discourage the widespread dependence on contract staffing and promote more structured, direct hiring by employers.

It was speculated earlier that the eligibility period might be reduced to three years. However, the final decision to bring it down to just one year for fixed-term employees represents a far more transformative step.

Gratuity is a lump-sum financial benefit paid by an employer to an employee as a token of appreciation for long-term service. Traditionally, this payment was made upon resignation, retirement or separation from an organisation after completing the mandatory five-year service period.

FTEs with two or three-year contracts were not eligible for this. Now, this payout will offer a crucial financial cushion during transitions.

The Payment of Gratuity Act covers a wide range of establishments, including factories, mines, oil fields, ports and railways.

The gratuity amount is determined using a standard formula: Last Drawn Salary × (15/26) × Number of Years of Service.

The last drawn salary includes Basic Pay and Dearness Allowance.

If an employee served for a year with a final basic-plus-DA salary of Rs 50,000, his gratuity would be: 50,000 × (15/26) × 1 = Rs 28,846.

This would ensure some financial support till the employee gets engaged elsewhere. The new framework is expected to offer greater financial security to employees while encouraging more stable workforce practices among employers.

According to the government, the new labour codes mark a significant step toward aligning India’s labour ecosystem with global standards and supporting a more equitable work environment.

Share196Tweet123
ADVERTISEMENT
Previous Post

1 Killed, 5 Critical As Ambulance Rams Into Truck In Odisha’s Sambalpur

Next Post

Odisha SI Recruitment Scam: 4 Grilled By CBI, 6 Others Summoned

OB Bureau

OB Bureau

Related Posts

Kejriwal Visits Goa Forward Party Chief’s Home For Ganesh Puja Day After ‘Goa First’ Alliance Launch

Kejriwal Visits Goa Forward Party Chief’s Home For Ganesh Puja Day After ‘Goa First’ Alliance Launch

by OB Bureau
September 14, 2026

Panjim: A day after declaring the ‘Goa First’ alliance for the 2027 Goa Assembly elections, AAP national convenor Arvind Kejriwal...

Three Indian-Origin Italians Leave India Without Immigration Checks; AI Showcaused

Three Indian-Origin Italians Leave India Without Immigration Checks; AI Showcaused

by OB Bureau
September 14, 2026

New Delhi: In a major violation of Standard Operating Procedure (SoP), three Italian nationals of Indian-origin were allowed to fly...

I Am Sorry, Didn’t Know A Girl Was On The Bike, Says Gurugram Hit & Run Accused

I Am Sorry, Didn’t Know A Girl Was On The Bike, Says Gurugram Hit & Run Accused

by OB Bureau
September 14, 2026

Gurugram: The prime accused in the Gurugram hit and run case, Kalyan Bainsla, on Monday claimed he wasn’t aware that...

Hockey: Men’s Asian Champions Trophy To Make A Comeback In Punjab From Oct 27 To Nov 5

Hockey: Men’s Asian Champions Trophy To Make A Comeback In Punjab From Oct 27 To Nov 5

by OB Bureau
September 14, 2026

Mohali: After a gap in 2025, the Hero Men’s Asian Champions Trophy is making a comeback this year. The 2026...

Next Post
Odisha SI Recruitment Scam: 4 Grilled By CBI, 6 Others Summoned

Odisha SI Recruitment Scam: 4 Grilled By CBI, 6 Others Summoned

OMC-Ad OMC-Ad OMC-Ad
SAI International School SAI International School SAI International School
OdishaBytes

Copyright © 2026 Frontier Media

Navigate Site

  • About
  • Advertise
  • Privacy & Policy
  • Contact
  • News Feed

Follow Us

No Result
View All Result
  • Home
  • Odisha
    • Policy & Politics
    • City
  • India
  • Sport
    • Cricket
    • Football
    • Hockey
    • IPL
  • Entertainment
    • Music
    • Movie Review
    • Television
    • Bollywood
    • Hollywood
    • Ollywood
  • Business
  • Lifestyle
    • Travel
    • Food
    • Health
    • fashion
  • World
  • More
    • News You Can Use
    • Good News
    • Viral Videos
    • Tech
      • Cars & Bikes
      • Mobile & Gadgets
      • Review

Copyright © 2026 Frontier Media