Yes, gratuity necessary for new joiners. And if an employee dies or becomes disable before fifth year its payable.
Calculation of Gratuity:
W x Y x 15 ÷ 26 [W = Last Wage drawn i.e. basic +. DA; Y = number of completed years of continuous service (six months or less to be ignored and more than six months to be counted as full year)
In case of an accident while on duty, the ensured worker (under ESIC) suffering from any temporary disablement are provided temporary disablement benefit@ about 75% of wage till the injury heals. If it turns to be a permanent disability then it is paid in cash depending upon the extent of loss of their earning capacity. This benefit is available from day one of the employment.
It is employer’s liability paying the gratuity there is no provision for contribution.