The central government is considering reducing the time limit from 5 years to one year by changing the gratuity rules. First of all, let us tell you what is gratuity? Gratuity is the amount paid to an employee on behalf of his organization where he was previously working. But for this gratuity , the employee is required to stay connected with the institution for at least 5 years i.e. it is necessary to do the job. Gratuity is usually granted when either the employee leaves the job, is fired or is retiring.
The Parliamentary Committee on Labor Affairs said in the report that the time limit for gratuity should be 1 year instead of 5 years. Explain that the gratuity limit of 5 years was created so that people stay connected with the institution for a long time and do jobs. But now employees do not stay for more than 1 or 2 years in any organization, so it is very important to reduce the period of gratuity to 5 years. According to the rule, if an employee leaves the company after working for 5 years or more, then that employee becomes fully entitled to gratuity. Every year the employees of the organization worked, 15 days salary is given every year. Apart from this, if the employee working in the organization dies due to any reason or the job is lost due to an accident, then the employee will get the amount of gratuity even in that situation . According to the rules of the Gratuity Payment Act 1972, its amount can be up to 20 lakhs.