Export sector fixed term workers must receive gratuity (Representative Image source: EqualStock/ Pexel) Show Quick Read Summary is AI Generated. Newsroom Reviewed

Fixed-term employees will become eligible for gratuity after one year of continuous service, instead of the previous five years, the Central government announced on Friday, as part of extensive labour reforms.

The definition of 'wages' has been expanded to include additional components. Gratuity itself will now count for the purposes of computing wages under the Payment of Gratuity Act, 1972.

The broader wage definition means gratuity payouts may also be calculated on a higher base, benefiting employees by increasing the quantum.

Moreover, export sector fixed term workers must receive gratuity, provident fund (PF), and o

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