Seniors pl advise:
Recently Appealate Authority has ordered to the employer to pay forfeited gratuity amount alongwith interest @10% simple interest from the date of retirement to the date of actual payment.
My query is..
what will be the interest period for computation of interest.
1. From date of retirement to date of submission of forfeited gratuity amount at controlling authority.
OR
2. From date of retirement to date of Order issued by Appealate Authority.
From India, undefined
2Recently Appealate Authority has ordered to the employer to pay forfeited gratuity amount alongwith interest @10% simple interest from the date of retirement to the date of actual payment.
My query is..
what will be the interest period for computation of interest.
1. From date of retirement to date of submission of forfeited gratuity amount at controlling authority.
OR
2. From date of retirement to date of Order issued by Appealate Authority.
From India, undefined
Dear Ss.R,
(1) As per sec.4(1) of the PG Act,1972, gratuity shall be payable to an employee on the termination of his
employment due to anyone of the reasons mentioned therein. It would therefore imply that the amount
becomes payable on the very date of termination or the next day at the earliest.
(2) Sec.7(3) of the Act stipulates the maximum permissible grace period for payment as 30 days from the
date gratuity becomes payable i.e., the actual date of termination of employment.
(3) Sec.7(3-A) imposes interest liability on default of payment from the actual date of termination till the date
of actual payment.
Therefore, you have to calculate interest effective from the date of termination upto the date of deposit with the C.A.
From India, Salem
(1) As per sec.4(1) of the PG Act,1972, gratuity shall be payable to an employee on the termination of his
employment due to anyone of the reasons mentioned therein. It would therefore imply that the amount
becomes payable on the very date of termination or the next day at the earliest.
(2) Sec.7(3) of the Act stipulates the maximum permissible grace period for payment as 30 days from the
date gratuity becomes payable i.e., the actual date of termination of employment.
(3) Sec.7(3-A) imposes interest liability on default of payment from the actual date of termination till the date
of actual payment.
Therefore, you have to calculate interest effective from the date of termination upto the date of deposit with the C.A.
From India, Salem
10% simple interest is too lenient a provision. If employer has to borrow this amount from market , the rate will be 24% or more. So he gains 14% , by not paying the gratuity.
Employee has to run from post to pillar, wait for 2/3 years even to get 1st favourable order from Trial court ( Labour Court) , engage an advocate , and attend on various dates.
Is there a provision for penalty besides interest ??
Regards
Abhay Damle
From India, Thana
Employee has to run from post to pillar, wait for 2/3 years even to get 1st favourable order from Trial court ( Labour Court) , engage an advocate , and attend on various dates.
Is there a provision for penalty besides interest ??
Regards
Abhay Damle
From India, Thana
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PF INTEREST CALCULATION SHEET.xls