Gratuity and Bonus — Current Affairs 2026

Current Affairs Connections

Recent developments and news linked to Gratuity and Bonus.

Code on Social Security 2020: Implementation Challenges and Gratuity for Fixed-Term Employees

latest update: June 2024

The Code on Social Security, 2020, which subsumes the Payment of Gratuity Act, 1972, has been a major topic of discussion. While the Code aims to simplify and universalize social security, its full implementation has seen delays. A key change relevant to gratuity is the provision for pro-rata gratuity for fixed-term employees, irrespective of the five-year service condition. This is a significant step towards extending benefits to a growing segment of the workforce often excluded from traditional labour protections. However, challenges remain in defining 'fixed-term employment' uniformly and ensuring compliance across diverse industries, especially for smaller establishments. The government is working on framing the final rules for effective rollout.

UPSC Angle: This development is crucial for Mains GS-2 (Social Justice, Government Policies) and GS-3 (Indian Economy, Labour Reforms). Questions can focus on the benefits and challenges of the new Code, its impact on the gig economy, and the implications for worker welfare in a changing employment landscape.

Digitalisation of Labour Compliances: Easing Gratuity and Bonus Processing

latest update: May 2024

The Ministry of Labour and Employment has been actively promoting the digitalisation of various labour compliances, including the processing of gratuity and bonus payments. Initiatives like the Shram Suvidha Portal aim to provide a single online platform for employers to submit returns, maintain records, and ensure timely payments. This move is intended to enhance transparency, reduce red tape, and improve the efficiency of benefit disbursement. For employees, it means faster access to their entitlements and better grievance redressal mechanisms. The push for digital records also helps in better enforcement of the Payment of Gratuity Act and Payment of Bonus Act.

UPSC Angle: This reflects a broader governance trend towards 'Digital India' and 'Ease of Doing Business'. It's relevant for Mains GS-2 (Governance, E-governance) and GS-3 (Indian Economy, Industrial Policy). Aspirants should analyze how technology can bridge gaps in social security delivery and improve labour law enforcement.