• 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

9 months ago
3 Teenagers Arrested In Assam’s Hailakandi After Alleged Rape, Murder Of Minor Girl

3 Teenagers Arrested In Assam’s Hailakandi After Alleged Rape, Murder Of Minor Girl

2 minutes ago
What Is Chandipura Virus That Killed 22 Children In Gujarat? Know More

What Is Chandipura Virus That Killed 22 Children In Gujarat? Know More

14 minutes ago
Odisha Clamps Down On Quarry Permits To Plug Revenue Losses, Curb Illegal Mining

Odisha Clamps Down On Quarry Permits To Plug Revenue Losses, Curb Illegal Mining

32 minutes ago
A Presidential First! Droupadi Murmu Arrives In Brahmapur Aboard Special Train

A Presidential First! Droupadi Murmu Arrives In Brahmapur Aboard Special Train

53 minutes ago
Stop Hasina From Addressing Virtual Event, Bangladesh Urges India

Stop Hasina From Addressing Virtual Event, Bangladesh Urges India

55 minutes ago
Masked Intruder Stabs Faridabad Schoolteacher To Death During Class Hours; Accused Arrested

Masked Intruder Stabs Faridabad Schoolteacher To Death During Class Hours; Accused Arrested

1 hour ago
Two Cops Suspended After Rape Accused Escapes From Police Custody In Bhubaneswar

Two Cops Suspended After Rape Accused Escapes From Police Custody In Bhubaneswar

1 hour ago
Claims Unverified; Dabur Can’t Sell Products With 100% Purity Tags

Claims Unverified; Dabur Can’t Sell Products With 100% Purity Tags

2 hours ago
Udhayanidhi Stalin Arrested Over Controversial ‘Trisha’ Remark At Cauvery Rally

Udhayanidhi Stalin Arrested Over Controversial ‘Trisha’ Remark At Cauvery Rally

2 hours ago
Banned Cough Syrup Worth Rs 1.2 Cr Seized, 2 Arrested  In Odisha’s Jharsuguda

Banned Cough Syrup Worth Rs 1.2 Cr Seized, 2 Arrested In Odisha’s Jharsuguda

2 hours ago
Latest Odisha Breaking News Updates | Tuesday, 04 August 2026

Latest Odisha Breaking News Updates | Tuesday, 04 August 2026

2 hours ago
Siddhivinayak Temple Trust Seeks Audit After Raj Thackeray’s Rs 18 Crore Donation Theft Charge

Siddhivinayak Temple Trust Seeks Audit After Raj Thackeray’s Rs 18 Crore Donation Theft Charge

2 hours ago
  • Home
  • About us
  • Career
  • Contact
  • Privacy Policy
  • Terms of Usage
Tuesday, August 4, 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

3 Teenagers Arrested In Assam’s Hailakandi After Alleged Rape, Murder Of Minor Girl

3 Teenagers Arrested In Assam’s Hailakandi After Alleged Rape, Murder Of Minor Girl

by OB Bureau
August 4, 2026

Hailakandi: Police in Assam have arrested three teenagers, including one aged 17, in the alleged rape and killing of a...

What Is Chandipura Virus That Killed 22 Children In Gujarat? Know More

What Is Chandipura Virus That Killed 22 Children In Gujarat? Know More

by OB Bureau
August 4, 2026

Gandhinagar: Health officials in Gujarat have gone on high alert after 22 children died of what is known as the...

Stop Hasina From Addressing Virtual Event, Bangladesh Urges India

Stop Hasina From Addressing Virtual Event, Bangladesh Urges India

by OB Bureau
August 4, 2026

Dhaka/New Delhi: Bangladesh wants India to stop its former prime minister Sheikh Hasina from addressing a virtual event from New...

Masked Intruder Stabs Faridabad Schoolteacher To Death During Class Hours; Accused Arrested

Masked Intruder Stabs Faridabad Schoolteacher To Death During Class Hours; Accused Arrested

by OB Bureau
August 4, 2026

Faridabad: A teacher at a private school in Faridabad was allegedly stabbed to death by a masked intruder on Monday...

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

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

TPCODL RathaYatra TPCODL RathaYatra TPCODL RathaYatra
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