FAQ >
Do fixed-term employees get gratuity under the new labour laws in India?
Question
Do fixed-term employees get gratuity under the new labour laws in India?
Answer
Yes. Under the Code on Social Security 2020, fixed-term employees are entitled to gratuity on a pro-rata basis upon contract termination after one year of continuous service. This is a significant change from the previous five-year threshold that applied only to permanent employees. The calculation remains at 15 days' wages per year of service, though the revised definition of wages under the new labour code may result in higher payouts than under the previous framework.
Updated
2026
