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Gratuity
Gratuity is a payment made by an employer to an employee on leaving after a qualifying period of service, calculated from the last basic salary and years worked. Under the 2025 labour codes, fixed-term employees qualify after one year instead of five.
Why It Matters
Gratuity rewards loyalty, and the new rules extend it to more workers.
In India
Gratuity is roughly 15 days of last basic pay for each year of service.
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