Payroll Compliance | Gratuity for Fixed-Term Employees

In line with India’s updated labour regulations under the Industrial Relations Code, 2020 and the Code on Social Security, 2020, gratuity eligibility for fixed-term employees has been updated in Keka Payroll.

Fixed-term employees are now eligible for gratuity upon completing one year of continuous service, ensuring statutory compliance and accurate benefit processing.

What’s New

• Fixed-term employees become eligible for gratuity after 1 year of service
• Eligibility aligned with updated Indian labour codes
• Gratuity calculations reflect statutory requirements
• Improved compliance accuracy during exit and settlement processing

Business Impact

• Ensures adherence to current labour law requirements
• Reduces compliance risk during audits
• Enables accurate gratuity provisioning and payout
• Maintains wage parity and statutory benefit consistency across employment types

This update strengthens payroll compliance by aligning gratuity eligibility rules with the latest statutory mandates for fixed-term employment.

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