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Gratuity Wage Rules for Fixed-Term Workers

Official Ministry of Labour FAQs explain the gratuity wage definition, fixed-term eligibility, effective date, and why CTC alone is not enough.

The Ministry's 2026 FAQs clarify when the revised wage definition applies to gratuity and what the FAQ says about fixed-term employees. They do not replace the full Code, state-specific rules, or an individual eligibility review.

Rule summary · verified 2026-10-10

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TopicOfficial summary
Wage definitionThe Ministry says the revised definition of wages applies to gratuity calculations from 21 November 2025
Fixed-term employeeThe FAQ says a fixed-term employee is eligible after one year of service under the contract
Wage componentsUse the inclusions and exclusions in section 2(88) of the Code on Social Security, 2020; the FAQ cautions against adding unspecified components

What changed since last year

The Ministry dates application of the revised wage definition to 21 November 2025, the Codes' implementation date.

In plain language

Do not estimate from CTC alone. Ask payroll which wage components and service dates it used, then compare them with the Code and the Ministry's FAQ.

Official sources