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Gratuity Calculation: Prime Minister Narendra Modi-led Union government is working on a plan to give relief to private sector employees ahead of the Lok Sabha elections next year. The government is preparing to reduce the time limit of five years of employment at an organisation for gratuity payment to three. As per sources, the Ministry of Labour has asked for feedback from the industry bodies on the proposal to the reduce the time limit. Once the feedback is received from various industry bodies, the proposal will be taken before the Central Board of Trustees.
People in the know of the things also say that the government is also considering to bring a change in the way gratuity amount is calculated. Labour unions have been demanding a reduction in the gratuity time limit. The government is also considering to extend gratuity benefits to contractual employees in the central government. If approved, the decision will benefit millions of private sector employees who often change companies before completing five years.
Source: Gratuity calculation: Modi govt plans this big gift for private sector employees; crores to benefit
People in the know of the things also say that the government is also considering to bring a change in the way gratuity amount is calculated. Labour unions have been demanding a reduction in the gratuity time limit. The government is also considering to extend gratuity benefits to contractual employees in the central government. If approved, the decision will benefit millions of private sector employees who often change companies before completing five years.
Source: Gratuity calculation: Modi govt plans this big gift for private sector employees; crores to benefit
