Gratuity Confusion: How Can I Find Out If My Interest Demand Was Met?

Dear all, I worked in a private institution named Sona College of Technology for 7 years and 4 months (including 1 year and 3 months of approved sabbatical leave). After I resigned from the institution, I applied for the gratuity funds. However, I received no information regarding it for 2 years and 10 months.

When I approached them for the gratuity, I demanded a 10% interest on the gratuity funds as compensation. Later, HR sent me a cheque for Rs. 100,130. However, he did not explain whether the interest rate I demanded was included in the cheque. When I asked for an explanation, he did not reply to my email or respond properly over a phone call.

How can I get to know the details of my gratuity?

If the amount of gratuity is not paid by the employer within the period specified in sub-section (3), he shall pay, from the date on which the gratuity becomes payable to the date on which it is paid, simple interest at such a rate not exceeding the rate notified by the Central Government from time to time for repayment of long-term deposits; provided that no such interest shall be payable.

Gratuity Payment Timeline

Under Section 7(3), the employer shall arrange to pay the amount of gratuity within 30 days from the date it becomes payable.

Thank you for your reply, Mr. Ravi. The HR department has sent me a cheque for Rs. 100,310 already. However, I am not sure whether it includes the interest or not. Should I take legal action or leave it as is? Why is the HR not explaining to me how the gratuity is calculated?

You have all the rights to understand the calculation done by HR. I suggest going through the below-mentioned formula for Gratuity and then coming to a conclusion.

Put all your figures into the formula, and you will come to know:

Gratuity = (Basic + DA) x 15/26 x number of years.

Using RTI to Obtain Gratuity Details

The educational institutions, including private ones, are amenable to RTI. Therefore, raise a query to the Public Information Officer (PIO) of the college, and the PIO has to reply within 30 days. You can make use of this provision to get the details.

Should I file the RTI with the Ministry of Labour and Employment or the Ministry of Higher Education? Thanks for your reply.