Payment of interest on delayed payment of gratuity

GOVERNMENT OF NCT OF DELHI
Finance (Accounts) Department
‘A’ Wing, 4th Level, Delhi Secretariat,
I.P.Estate, New Delhi.

No.F.12/9/2011-AC/DSIII/1163-1171

Dated: 29.08.2011

OFFICE MEMORANDUM

Subject: Regarding payment of interest on delayed payment of gratuity.

           A number of proposals are being received from various departments seeking approval for payment of interest on delayed payment of gratuity in respect of retired government servants on account of administrative lapses.

          The attention of all the Departments is invited to the provisions laid down in RuIe-68 of CCS (Pension) Rules, 1972 and Government of India’s decisions thereunder. It has been provided that, if the payment of gratuity has been authorized later than the date when its payment becomes due, and it is clearly established that the delay in payment was attributable to administrative lapses, interest shall be paid at such rate as may be prescribed, and in accordance with instructions issued from time to time. In all cases where the payment of interest has been sanctioned by the department with the approval of the competent authority, such department shall fix responsibility and take disciplinary action against the government servant or servants responsible for the delay.

         All necessary steps should, therefore, be taken by the Head of Office for ensuring that payment of interest on delayed payment of gratuity is avoided. Officials dealing with such files should be held accountable and responsibility be fixed for not taking timely action in this regard.

        However, where disciplinary or judicial proceedings against a government servant are pending on the date of his retirement, no gratuity is to be paid until conclusion of the proceedings and issue of final orders thereon.

        Henceforth, it has been decided that in all cases of payment of interest on delayed payment of gratuity attributable to administrative delays [barring cases where disciplinary or judicial proceedings against a government servant are pending on the date of his retirement] action will be taken against officials responsible for such delays which may include recovery of the amount of Interest paid on account of delayed payment of gratuity from the salary of delinquent officers/officials.

sd/-
(B.L. Sharma)
SpI. Secretary (Finance)