Gratuity Fund Delays: How Long Before Interest Kicks In and What’s the Rate?

Dear Senior, please let me know what the rate of simple interest will be for delayed payment of the gratuity fund to the employee. Additionally, after how many days of non-payment of gratuity from the date of leaving is this delayed interest applicable?

Regards,
Saurav

As per the Gratuity Act, the gratuity payment should be made within 30 days. For delayed payments over 30 days, the employer has to pay interest at the rate of 12% per annum.

Regards,
S. Sethupathy
Excellent HR Services,
Erode

The simple interest, as notified by the Government of India from time to time for long-term deposits, will be applicable for delayed payment of Gratuity.

Regards,
Rajendra Kumar