Corporate Compliance 23 October 2026
New Gratuity Act Replaces 1972 Law for Employers
The 1972 Gratuity Act governing Indian employers has been superseded by the 2020 Code on Social Security. New provisions detail employer obligations, calculation methods and payment timelines, requiring compliance to avoid penalties.
The 2020 Code on Social Security updates the Gratuity Act, ending the five‑decade rule set by the 1972 law.
- Employers must now calculate gratuity based on the revised formula in the Code.
- Payment timelines are stricter, with penalties for delays.
- Detailed duties are listed in the Legal Service India article for easy reference.
For full details, see the Legal Service India article.
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