Gratuity SSC 2020


Introduction
With the Government notifying major parts of the Social Security Code, 2020 on 21st November 2025, one question is trending everywhere:

“Will I get gratuity after completing one year?”
Social media and WhatsApp messages claim that every employee will now receive gratuity after just one year of service.
But is this actually true?

This blog gives you the correct, legal and simplified explanation based on the new Code.

⭐ Short Answer
You will get gratuity after one year ONLY if you belong to certain specific categories of employees.
For all regular employees, the five-year rule still applies.

- Who Is Eligible for Gratuity After One Year?
Under Section 53 of the Social Security Code, 2020, the 1-year gratuity rule applies to the following groups:

1. Fixed-Term Employees (Major Change)
A fixed-term employee is someone hired on a contract with a fixed start and end date.
Under the new Code:
✔ They become eligible for gratuity after 1 year.
✔ They do not need to complete 5 years.
✔ They get the same gratuity formula as permanent employees.
This is one of the biggest reforms and is the main source of confusion online.

2. Working Journalists
Working journalists continue to enjoy the earlier benefit from the old Working Journalists Act.

✔ They get gratuity after 1 year of service.
This includes journalists working in print, broadcast, or digital media.

3. Notified Hazardous/Physically Demanding Jobs
If the Government notifies certain hazardous or high-risk jobs, employees in those categories will also get gratuity after 1 year.

(These categories will apply only after the Government issues specific notifications.)

❌ Who Will NOT Get Gratuity After One Year?
If you are a regular, permanent, or full-time employee on normal payroll, then your eligibility has not changed.

✔ You still need 5 years of continuous service to receive gratuity.
This is the same as under the old Payment of Gratuity Act.

Despite the new Code coming into force, the 5-year rule continues for:
- Office employees
- IT workers
- Private company staff
- Factory and shop employees
- Sales, admin, and support roles

- The formula remains the same:

Gratuity = (15/26 × Last Drawn Basic + DA) × Years of Service
For fixed-term employees, it is calculated proportionately.

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