New Delhi, April 1 -- Indian employees could get higher gratuity payouts under the new Labour Codes announced by the government late last year. The revised rules change how 'wages' are defined for calculating retirement benefits, according to experts.

Under the revised framework, wages used for gratuity calculations will include basic pay, dearness allowance (DA) and retaining allowance, which together must constitute at least 50% of an employee's total cost-to-company (CTC).

Notably, gratuity is almost always included in the CTC despite no strict legal mandate that an employer must show it in the offer letter. Rishi Agrawal, CEO and co-founder of Teamlease Regtech, noted that most companies include it because it represents a statutory ...