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Gratuity 2026 Old vs New

Fixed-Term Employee Gratuity After One Year

Review the Labour Ministry FAQ on one-year gratuity eligibility for directly engaged fixed-term employees and calculate a scenario carefully.

Last reviewed: 16 July 2026

Direct answer

Can a fixed-term employee receive gratuity after one year?

The Labour Ministry March 2026 FAQ states that a fixed-term employee directly engaged by an employer is eligible for gratuity after one year, subject to the applicable legal conditions. Contract type and engagement facts still need verification.

Worked example

For an eligible directly engaged fixed-term employee, enter the applicable wage and eligible service period; do not automatically apply the rule to a contractor workforce arrangement.

What to check

  • Confirm direct fixed-term engagement.
  • Use the applicable wage definition.
  • Retain the contract and service records.

How the calculator approaches it

  1. 1.Enter the current eligible monthly wage used for gratuity.
  2. 2.Build a separate wage-base scenario from remuneration and the selected share.
  3. 3.Apply eligible wage x 15/26 x eligible service years to both cases.
  4. 4.Apply the verified cap and compare the results.

Important limitation

The calculator does not decide eligibility, statutory wage components, service rounding or transition treatment. Use the service and cap that legally apply to the employee.

Primary sources

Related questions

Gratuity 2026: Old vs New Wage BaseGratuity and the 50% Wage RuleGratuity Calculation with Joining and Exit Dates

FAQs

Can a fixed-term employee receive gratuity after one year?

The Labour Ministry March 2026 FAQ states that a fixed-term employee directly engaged by an employer is eligible for gratuity after one year, subject to the applicable legal conditions. Contract type and engagement facts still need verification.

Which calculator should I use for this question?

Use RupeeKit's Gratuity 2026 Old vs New Calculator and replace the example with your own current figures.

RupeeKit provides educational estimates only. This page is not personalised financial, investment, tax, legal or lending advice. Verify current rules, product documents and your own facts before acting.