Hi All, What will be the rate of interest for delayed payment of Gratuity. How we do we calculate that.

@Shyamala Thangadurai once the employee leaves the organization Gratuity need to be settled within 30 days from the date of exit. in case not paid the current rate of interest is 8% per annum. The interest is calculated on a monthly basis, from the due date of payment until the date of actual payment. For example, if an employer fails to make the gratuity payment within 30 days from the date of exit, they will be liable to pay an interest of 8% per annum on the amount due, calculated on a monthly basis from the 31st day until the date of actual payment.

@Karthik Ingarsal Is there an act that says its 8%

Yes it is 8 % you can refer to the gratuity act for the same details

It was mentioned as latest interest rates as per Government bank

Let me check on it and get back. We will have to see in what context the wording has been framed as well. As in most cases it will refer to nationalised bodies and the same thing reflects to other sectors as well

https://upload.indiacode.nic.in/showfile?actid=AC_CEN_6_6_00038_195219_1517807328217&typ[…]n&filename=important_notifications_under_pg_act,_1972.pdf it is a government website, based on the sector, and industry please find the interest rate, it is 10% Banks would have mentioned the interest rate as per the notification number please cross check with the above page