New Delhi. The government has implemented a new labor law in the country. Many changes have been made in this for the benefit of the employees. Under this new law which came into effect from November 21, the rules of gratuity have also been changed. This means that under the new law the calculation of gratuity will also change. Therefore, if your salary package is Rs 6 lakh, Rs 12 lakh or Rs 24 lakh, then how much gratuity will be made under the new rule.
Under the new labor law, two such rules have been changed, which have a direct impact on the calculation of gratuity. The first is that now the employees recruited for fixed term and kept on contract will also get the right to gratuity. Now such employees will get the right to gratuity only after working for one year. However, even today, for permanent employees, gratuity will be given only after completion of 5 years of service. This means that even in the new law, the rules of tenure for permanent employees have not been changed, but for temporary or fixed term employees, it has now been limited to only 1 year.
Many more wages will be included in gratuity
Under the new rule, while calculating gratuity, not only the basic salary will be counted, but dearness allowance and other allowances will also be added to it. Gratuity will be calculated by adding 50 percent of all the facilities provided to the employee. If there is an increase in the basic salary of the employees under the new labor law, then definitely their PF and gratuity may also increase.
How will gratuity be calculated in the new act?
Suppose an employee gets a total salary of Rs 70 thousand every month, out of which Rs 30 thousand is given as basic salary and Rs 40 thousand is given as other allowances. If gratuity is calculated after 10 years of service, how much money will be received? If this salary is calculated according to the new and old gratuity rules, then how much money will be received.
- Under current rules: Under the current rules, gratuity will be calculated at Rs 30 thousand. The gratuity formula applied on this will be 30 thousand times 10 years times 15 divided by 26, after which the total gratuity will be Rs 1,73,076.
- Under the new rules: Under the new rules of gratuity, whatever amount will be given in other allowances in excess of the basic, 50 percent of it will be calculated by adding it back to the gratuity. This means that the amount of Rs 40 thousand being given for other items is Rs 10 thousand more than the basic amount of Rs 30 thousand. Therefore, its calculation will be done by adding 50 percent of it i.e. Rs 5 thousand to the basic. In this way, the basic will be Rs 35 thousand and after applying the same calculation formula, the gratuity will be Rs 2,01,923. That means, under the new rule, you will get Rs 29 thousand more gratuity.
How much will be the gratuity on 6 lakh CTC?
Suppose someone’s total CTC is Rs 6 lakh per annum and basic salary is half of it i.e. Rs 3 lakh. In such a situation, how much gratuity will a person working for a year get under the existing and new rules? If half of the basic i.e. Rs 1.5 lakh is given as HRA and Rs 36 thousand goes to PF, then to balance the entire salary, the company will have to put Rs 99,570 in other allowances under the current rule, whereas in the new rule Rs 95 thousand will have to be put in other allowances. Therefore, when the gratuity will be calculated, in the existing rule only the basic salary of Rs. 3 lakh will be made the basis, whereas under the new rule, the allowance of Rs. 95 thousand will also be added to the basic and the gratuity will be calculated.
How will the calculation be done on 12 lakh CTC?
If someone’s CTC is Rs 12 lakh, then under the current rule the basic will be Rs 6 lakh. 50 percent of this i.e. 3 lakh HRA and 4.81 percent of basic i.e. Rs 28,860 will be contributed in gratuity. Even after depositing Rs 72 thousand in PF, the company will have to pay Rs 1,99140 as other allowance to balance it. Rs 1.90 lakh will be given under other heads. But, while calculating gratuity, in the current rule only Rs 6 lakh basic will be counted, whereas in the new rule, gratuity will be calculated at Rs 7.90 lakh.
How to make money on CTC of Rs 24 lakh
If the CTC of an employee is 24 lakhs then 50 percent of it i.e. 12 lakhs will be basic and 50 percent of that i.e. 6 lakhs will be HRA. 12 percent of the basic amount i.e. Rs 1.44 lakh will go to PF, while to balance it, Rs 3,98,280 will have to be paid in other heads under the current rule, whereas in the new rule Rs 3,80,002 will have to be deposited. However, when gratuity will be calculated, under the existing rule it will be calculated only on Rs 12 lakh, whereas in the new rule gratuity will be calculated on Rs 15.80 lakh.
