Gratuity now after just 1 year: India's new labor codes explained
India rolled out four new labor codes in 2025, shaking up how employee benefits work.
The headline change? If you're a fixed-term employee, you can now get gratuity after just one year on the job instead of five.
This move finally brings temporary staff closer to the perks permanent employees enjoy.
More fairness for everyone
The new rules mean fixed-term employees must get equal pay, leave, and social security—no more missing out just because your contract is short.
For anyone who's switched jobs often or worked gigs, this could mean real financial security and better working conditions.
Retirement benefits just got bigger
'Wages' now include more of your actual paycheck—basic pay, dearness allowance, and retaining allowance must make up at least half your total salary.
That means calculations for things like provident fund and gratuity will be based on a higher amount, so your retirement payouts could see a boost.
Out with the old (laws), in with the new
These four codes replace 29 older laws to make things simpler for both workers and employers.
It's all about modernizing India's workplace rules to fit today's job scene—less confusion, more clarity.