Life Before And After Imposition Of Gratuity In India

We got independence in 1947 but the people started working even before getting independence. Employment was there even before independence, it was low as compared to now but people were engaged in rendering serving in offices and workshops even at the time. The major difference between the employment was the amount of gratuity that we receive now was not there at that time. 

You simply cannot compare today’s salary with that time as the expenses have also changed with time. Things had a price according to the pay on individuals at that time also and so is the current situation of the nation. So, it is not correct to compare the salary of individuals of that time and individuals of the current time. 

One thing that can be compared is the amount of gratuity. People who were working at that time were not entitled to receive any kind of extra income even after their retirement but now it is mandatory in India to give every person who has worked for at least 5 years in the same organization the bonus and gratitude for his loyalty towards the organization. 

With the implementation of the gratuity act in 1972, many people were benefited from this policy by the government. Let’s compare two people, one who retired before the gratuity act the other one who retired after the gratuity act. 

  • The first person started his job in 1950 and worked till 1970 and dropped his job after that to try something new in his life. He was paid enough to run a house of 4 members comfortably but when he grew older he exhausted all his money and he has to depend on his family members for everything. 
  • The Second person, on the other hand, started working in the year 1955  but worked until 1985. The gratuity act came in between the period and he worked for almost 13 years after the implementation of this act. He was also getting good pay at his job but when he retired, he received a bonus amount into his account in the name of gratuity. He uses it to fulfill his needs and was never dependent on his family for any expenses.

The major difference that gratuity made in both their lives can be clearly seen here as the first one has to depend on someone after getting retired as he has no money to take care of himself, on the other hand, the second person was able to take good care of his health and needs without depending on anyone of his family. 

The gratuity act has helped so many people like in this way by enabling them to live freely in their old age and to never get depended on any of their family members. Now all the employees working in a corporation for over 5 years are going to be benefited from the same gratuity act. If you have no idea how much amount you will be getting here as gratuity, you can use the Gratuity Calculator For India to examine and get an approximate figure of your gratuity amount. 



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