The new rules for gratuity effective from July 2022 include the following:
50% of employees’ CTC must be basic pay. The remaining 50% can be employee allowances, house rent, and overtime. Allowances or exemptions beyond 50% of the CTC, is considered remuneration.
Maximum basic pay is now limited to 50% of CTC. The gratuity amount will now be calculated on a large salary base.
Overtime work of 15 minutes or more must be paid for.
Maximum work capacity of 48 hours.