Gratuity Rule Change: 1-Year Eligibility Announced
Government officials discuss new gratuity rules in a busy office.
Key Highlights
Gratuity eligibility reduced to 1 year from 5! New labor codes effective Nov 21, 2025. Applies to a specific employee category. Stay informed!
Significant changes are coming to gratuity eligibility rules, potentially benefiting a segment of the workforce. According to the new labor codes, employees may become eligible for gratuity after just one year of service, a considerable reduction from the previous requirement of five years.
However, this change is not universally applicable. The revised eligibility criteria will take effect on November 21, 2025, and will only apply to a specific category of employees, according to reports.
The details of which employees will qualify under the new regulations are still emerging, but the change marks a notable shift in labor policy. and employers alike should take note of the effective date to ensure compliance.