TheBankTodayTheBankTodayTheBankToday
Notification Show More
Font ResizerAa
  • Home
  • Banking
  • SBI
  • ATM Card
  • NEFT/UPI
  • Central Bank
  • Important
Reading: Private Employees Can Benefit from New Gratuity Rules
Share
Font ResizerAa
TheBankTodayTheBankToday
  • Home
  • Banking
  • SBI
  • ATM Card
  • NEFT/UPI
  • Central Bank
  • Important
Search
  • Home
  • Banking
  • SBI
  • ATM Card
  • NEFT/UPI
  • Central Bank
  • Important
Have an existing account? Sign In
Follow US

Home » Important

Gradty Rules result
Important

Private Employees Can Benefit from New Gratuity Rules

Takendra Verma
Last updated: 03/04/2026 3:10 PM
Takendra Verma
Published: 03/04/2026
Share
SHARE

If you work in a private job and are planning to change your company, gratuity is very important. A common question is: Does the notice period count as part of your service?

Contents
Key Points You Should KnowWhy This Rule MattersDoes Notice Period Count as Service?Yes, in most casesWhat does this mean?Will This Apply in Every Case?Who Does This Rule Apply To?What If There Is a Delay in Payment?Major Changes in Gratuity RulesBiggest Advantages of New RulesChanges for Fixed-Term EmployeesImpact on Salary StructureNew Rule:Benefit:Important Rules and What You Should DoWhen Will You Get the Money?Summary of RulesWhat Should You Do?Simple ConclusionFinal Advice

With the new labor rules, things are now clearer. Knowing the correct information can help you gain thousands or even lakhs of rupees.

Key Points You Should Know

Notice period is usually counted as service if you are on the company payroll

This can help you meet the minimum eligibility requirement

Fixed-term employees can now get gratuity after just 1 year

If your basic salary increases, your gratuity amount also increases

Why This Rule Matters

Gratuity is a reward for your loyalty to the company.

If you do not complete the required service period, you may not get gratuity

But if your notice period is added, you may become eligible

Even a 2–3 month notice period can help you qualify and earn a large amount

Does Notice Period Count as Service?

Yes, in most cases

Your notice period will be counted as part of your service if:

You are still on the company payroll

You are receiving a salary

PF (Provident Fund) is being deducted

What does this mean?

In simple words:

You are still considered an employee

The company is paying you

You are active in the system

So, this time is added to your total job duration.

Will This Apply in Every Case?

No, there are some conditions:

Your notice period must be treated as working tenure

The company must accept your resignation

You should receive your Full & Final (F&F) settlement within 2 working days

According to law:

Under the Code on Wages, payment must be done within 2 working days after your last working day

Who Does This Rule Apply To?

Employees who resign

Employees who are terminated

Retrenchment cases

These rules apply to all of them.

What If There Is a Delay in Payment?

If you don’t receive money within 2 days, it is a legal violation

You can complain to the Labour Department

You also have the right to claim interest for the delay

Major Changes in Gratuity Rules

Fixed-term employees can now get gratuity after 1 year of service

Earlier, 5 years were required

Gratuity must be paid within 30 days after leaving the job

Biggest Advantages of New Rules

Faster payment of money

More financial security

Easier job switching

Changes for Fixed-Term Employees

Earlier:

Minimum 5 years required

Now:

Gratuity available after 1 year

This is a big benefit for contract workers.

Impact on Salary Structure

New Rule:

Basic salary must be at least 50% of CTC

Benefit:

Gratuity is calculated on basic salary

Higher basic salary = higher gratuity

Important Rules and What You Should Do

Notice Period: Counts as service if on payroll → Always complete it

Gratuity Eligibility: Usually 5 years (sometimes 4 years 240 days) → Plan properly

Fixed-Term Jobs: Eligible in 1 year → Use this benefit

Basic Salary: Must be 50% of CTC → Understand your salary structure

Payment Time: F&F in 2 days, gratuity in 30 days → Complain if delayed

Big Advantage: Notice period can help you qualify → Don’t rush your exit

When Will You Get the Money?

Full & Final settlement: within 2 working days after leaving

Gratuity: within 30 days

Summary of Rules

Gratuity: After 5 years (or 4 years + 240 days in some cases)

Notice period: Counts as service (if on payroll)

Fixed-term employees: Eligible in 1 year

Basic salary: Minimum 50% of CTC

Payments: Faster settlement required

What Should You Do?

If you are planning to change your job:

Always complete your notice period

It can help you qualify for gratuity

If you are close to 4.5–5 years:

Every day matters

Notice period can be a game changer

If you are a contract employee:

Now you can benefit even in 1 year

Simple Conclusion

A little patience can give you big financial benefits

Proper planning can help you earn lakhs of rupees

Not completing notice period can lead to loss

Final Advice

Check your joining date and last working day

Complete your notice period

Keep your relieving letter safe

Confirm gratuity calculation with HR

If the company refuses to pay, complain to the Labour Commissioner

You Might Also Like

Vedanta Investors to Get 4 New Shares
Invest Rs 2 Lakh and Get Rs 6 Lakh with THIS Post Office FD
Get Free Airport Lounge access with Amazon Pay ICICI Bank Credit Card
BSE, NSE to Remain Closed for 11 Days in October
Bajaj Steel Industries Share Price Rises by 15%
Share This Article
Facebook Email Print
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Difference Between NEFT and RTGS

Get Latest Updates

Important banking and money updates, delivered without the clutter.
Thank you! You are subscribed. Please check your inbox for the welcome email.

Popular Updates

sebi
SEBI Settlement Rules 2026 bring New Formula and Fast Track
10/10/2026
ICICI1 result
ICICI Bank Customers Get Travel Deals and Fashion Discounts
09/10/2026
nps
PhonePe and BHIM Users Can Open NPS Accounts Easily
09/10/2026
gst1
GST Changes bring Relief for Business Owners
09/10/2026
upi
UPI MDR may Shift to January 2027 from October 15
08/10/2026

Tags

  • Central Bank Of India
  • Pan Card
  • register mobile number
  • pan card new rule
  • Banking Service
  • HDFC
  • SBI Personal Loan
  • Net Banking
  • Activate Net Banking
  • What is Bank?

TheBankToday

TheBankToday publishes practical banking, personal-finance and financial-news explainers to help readers understand important updates and services.
Quick Links
  • About
  • Contact Us
  • Disclaimer
  • Join Us
  • T&C
  • Privacy Policy
  • Customize Interests
Important Links
  • Advertise With Us
  • Advertising Policy
  • Cookie Policy
  • Corrections Policy
  • Editorial Policy
  • Fact-Checking Policy
  • Grievance Redressal

Subscribe Us

Subscribe to our newsletter to get our newest articles instantly!

Thank you! You are subscribed. Please check your inbox for the welcome email.
© 2026 TheBankToday. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?