Deadlines · Social Security Code
Gratuity payment
- When someone leaves: within 30 days
- Employer
What to do
As soon as gratuity becomes payable, work out the amount and give written notice of it to the person entitled and to the competent authority, whether or not an application has been made s. 56(2). Pay it within thirty days from the date it becomes payable s. 56(3).
Who it applies to
Employers covered by the gratuity Chapter: every factory, mine, oilfield, plantation, port and railway company, and every shop or establishment in which ten or more employees are employed, or were employed on any day of the preceding twelve months First Schedule.
In the checklist: Gratuity (Code on Social Security Chapter V).
When
Within thirty days from the date gratuity becomes payable; if it is paid late, simple interest is due for the delay s. 56(3)–(4).
How
When you receive an application in Form IV, reply within fifteen days with a notice in Form V giving the amount and a payment date not later than the thirtieth day after the application, or the reasons for refusing the claim rule 33(2)(a).
Pay by demand draft or by credit to the bank account of the employee, nominee or legal heir rule 33(3).
If the amount is disputed, deposit the amount you admit with the competent authority s. 56(5)(a).
Forms
- Form IV of the SS (Central) Rules · official PDF, p. 211
- Form V of the SS (Central) Rules · official PDF, p. 212
Forms lose their layout when extracted; use the official PDF to fill them in.