Topic
Employees are entitled to 10% annual interest on delayed gratuity payments under Section 7(3) of the Payment of Gratuity Act, 1972, as per the Ministry of Labour notification. The Allahabad High Court ruled that employers must comply with this mandate, ensuring timely compensation for delayed payments.
The Madhya Pradesh High Court ruled that employers must pay 4% per annum interest on delayed gratuity payments, even if the employee's qualifications are later challenged. The court held that once an employee is allowed to work until superannuation, disputes over qualifications cannot justify withholding statutory benefits, reinforcing employer liability for delayed payments under the Payment of Gratuity Act.
Punjab & Haryana High Court reaffirms that retired employees are entitled to 18% interest on delayed gratuity payments, holding the State liable for compensating financial losses due to administrative delays. The ruling underscores the State’s obligation to disburse pensionary benefits within a reasonable timeframe, failing which interest at a penal rate becomes payable.