Gratuity Scheme to Private and Contract workers of Public Sector, here is what government said

New Delhi: The government had a few months ago said that there would be no change in the gratuity norms. 

Responding to a question in the Rajya Sabha, Minister of State for Labour and Employment Rameshwar Teli had in March this year said that employees will get gratuity equal to 15 days' salary in a year and there is no proposal to increase it to 30 days. Teeli was responding to the question on "whether Government is considering to increase the Gratuity payment from 15 days’ salary for each completed year to 30 days’ salary for all employees of Government sector and Private sector".

In his other reply on the question on "whether Government is considering to implement the Gratuity Scheme to the Private and Contract workers of Public Sector even if they have completed one year as they may not complete 5 years services and if so, the details thereof," Teeli said that it will not be necessary for cerain aspects.

"Under the Code on Social Security, 2020, completion of continuous service of five years shall not be necessary for payment of gratuity, where the termination of the employment of any employee is due to death or disablement or expiration of fixed term employment or happening of any such event as may be notified by the Central Government. However, the Code has not yet come into force," responded Teeli.

The Payment of Gratuity Act 1972 was enacted to provide for gratuity payment to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments. It is applicable to employees who have completed at least five years of continuous service in an establishment that has ten or more persons.