Labour Law

The Code on Social Security, 2020 (SSC 2020), revolutionizes gratuity laws in India by consolidating the Payment of Gratuity Act, 1972, into a comprehensive framework. Chapter V (Sections 53–58) governs gratuity, extending its reach to gig, platform, and fixed-term workers alongside traditional employees. Applicable to establishments with 10 or more workers, it ensures eligibility after five years of continuous service—waived for fixed-term contracts—covering superannuation, resignation, death, or disablement. Gratuity is calculated at 15 days’ wages per year, capped at ₹20 lakhs, with mandatory insurance funding to secure payouts. Despite robust enforcement mechanisms, pending rules as of October 2025 pose implementation challenges. Explore the full legal framework at Law by Khyati to understand your gratuity rights and obligations.