Who pays gratuity to contract workers?

Gratuity is payable by your employer after at least five years of continuous service s. 53(1).
An employee under the Code includes a person employed through a contractor s. 2(26).

Last checked 1 Nov 2026 · written from the official text · not reviewed by a lawyer. This explains the law in general and does not decide your case.

What the Labour Ministry says

“the employer (i.e. Contractor) will pay gratuity on rendering of five years continuous service” FAQ 16, Additional FAQs, 16 Mar 2026: official copy · our copy
The Ministry was asked whether the principal employer or the contractor bears gratuity for contract labour.

This is the Ministry's explanation, not the law. Its FAQs and Handbook say the Codes prevail.

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