Gratuity not paid: claim letter and checklist

Banthry Prep. General information, not legal advice. Section numbers are from the Code on Social Security, 2020, which

took over gratuity from 21 November 2025. Rules, forms and the authority's office differ by state and establishment.

The rule in one line

Once gratuity becomes payable, the employer must pay it within 30 days (section 56(3)). If it pays late, it owes

simple interest from the date gratuity became payable until it pays (section 56(4)), at a rate capped by the

Central Government's notified rate for long-term deposits.

Am I eligible?

• Five years of continuous service, ending by superannuation, retirement, resignation, or termination (section 53(1)).
• Five years are not needed on death or disablement, or when a fixed-term contract ends (section 53(1) provisos); then it is paid pro rata. On death it goes to the nominee or heirs.

How much?

• 15 days' wages for every completed year of service; a part year of more than six months counts as a full year (section 53(2)).
• Monthly wages: wages ÷ 26 × 15 × completed years (section 53, Explanation). Example: ₹50,000 wages, 5 years = about ₹1,44,231.

Checklist

1. Note your last working day and your last month's wages (payslip).
2. Send the written claim below to the employer (email and registered post). Keep proof of sending.
3. Wait 30 days from the date gratuity became payable.
4. Not paid, or the amount is disputed: apply to the competent authority notified for your establishment (ask the labour department office for your area which officer it is; central and state establishments have different ones). It holds an inquiry, hears both sides and decides (section 56(5)-(6)).
5. Against its order, an appeal lies within 60 days (section 56(8)).
6. Not paying gratuity an employee is entitled to is an offence: up to one year's imprisonment, or a fine up to ₹50,000, or both (section 133).

Claim letter (fill the blanks)

To: The HR Head / Employer, [Company name], [Address]

Date: [DD/MM/YYYY]

Subject: Payment of gratuity under section 53 and 56 of the Code on Social Security, 2020

1. I, [Name], employee code [ ], worked with the company from [date of joining] to [last working day], a continuous service of [ ] years and [ ] months.
2. My last drawn monthly wages were ₹[ ]. My gratuity works out to ₹[ ] (wages ÷ 26 × 15 × [ ] years).
3. Gratuity became payable on [last working day]. Under section 56(3) it is due within thirty days of that date, with interest under section 56(4) for any delay.
4. Please pay ₹[ ] to my account [bank, account number, IFSC] and send me the calculation.

[Signature], [Name], [Phone], [Email]

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