Any Interest Provision Applicable Is To Gratuity & Leave Wages

janasoft007

Hi Seniors,
Kindly rectify following clarifications.
1. Payment of Gratuity Act, any interest have to pay to employees for his Gratuity.
2. Leave encasement , for leave wages have to pay any interest to employees for delay payment.
Thanks,
K.Janarthanan

varghesemathew

Yes .Interest is payable if gratuity is not paid within 30 days from the date it becomes payable.see sec 7 (3A) of Payment of Gratuity Act,
Varghese Mathew
09961266966

dsubbarao

For payment of Leave encashment and leave salary, there is no provision exists for payment of interest.
However employer should see that there is no abnormal delay.
SUBBA RAO

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