The Central Government has introduced major changes in labor rules, implementing four new labor codes that replace older laws. These updates aim to strengthen employee benefits and financial security.

1️⃣ Gratuity After 1 Year: A Game-Changer

· Previously, employees were eligible for gratuity only after 5 years of service

· Under the new rules, gratuity can be claimed after just 1 year

· This ensures early financial protection for short-term employees

2️⃣ Which Employees Are Affected?

· All private sector employees covered under the Payment of Gratuity Act

· Applicable to those earning up to a certain salary limit (as per government notification)

· Benefits extend to permanent, contract, and casual workers

3️⃣ Other Key Labor Code Changes

· Working Hours & Overtime: More flexibility with maximum weekly hours and overtime compensation

· Leave & Holidays: Standardized leave rules across industries

· Social Security Benefits: Easier access to health, pension, and insurance benefits

4️⃣ Impact on Employees

· Faster financial security: Gratuity payout can support employees even in shorter tenures

· Increased job satisfaction: Employees feel protected and valued

· Easier retirement planning: Early gratuity accumulation helps in long-term savings

5️⃣ How to Claim Gratuity Under New Rules

· Ensure employment records and salary slips are maintained

· Apply through employer or HR department after completion of 1 year

· Keep updated on online government portals for streamlined processing

✅ Takeaway

The new labor codes are a major step forward for employee welfare, with gratuity after just 1 year being a landmark change. Employees now enjoy earlier financial security and broader social benefits under standardized rules.

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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Kokila Chokkanathan

25/11/2025 11:45 AM