News & Media 26th Nov 2025

Gratuity payment after 1 year of service for salaried employees under fixed-term employment; know how it works and who is eligible for it

Authors

Suhail NathaniManaging Partner | Mumbai

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“Our Partner, Suhail Nathani shares his insight in The Economic Times article, “Gratuity payment after 1 year of service for salaried employees under fixed-term employment; know how it works and who are eligible for it?”
He says, “The new wage definition includes basic pay, dearness allowance, and retaining allowance, with wage set at 50% of total remuneration. This may slightly reduce immediate take-home pay for permanent and fixed-term employees but directly boosts statutory benefits like PF, gratuity, and NPS, strengthening long-term financial security.”

Read the article here

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