imp/urg

Gratuity is to be paid within 30 days after it becomes payable. For delayed payment under section 8 of the Payment of Gratuity Act, 1972, interest is payable at the rate to be notified by the Central Government. This rate has been notified at 15% vide the Central Government Notification published in Gazette of India, Entry No.603 being Notification No.S.O.1032(E) dated 1st December, 1987.

Section 7 of the Payment of Gratuity Act provides that -

"If the amount of gratuity payable under sub-section (3) is not paid by the employer within the period specified in sub-section (3), the employer shall pay, from the date on which the gratuity becomes payable to the date on which it is paid, simple interest at such rate, not exceeding the rate notified by the Central Government from time to time for repayment of long-term deposits, as that Government may, by notification specify:

Well defined by Sanjeev. One month shall be excluded and interest @15% shall be payable from the day of exxpiry of one month of the entitlement till its actual realisation.