Pension Rule No.87: Interest On Delayed Payment Of Gratuity
87. Interest On Delayed Payment Of Gratuity:-
(1) In all cases where the payment of gratuity has been authorized later than the date when its payment becomes due, including the cases of retirement otherwise than on superannuation, and it is clearly established that the delay in payment was attributable to administrative reasons or lapses, interest shall be paid at the rate applicable to State Railway Provident Fund amount in accordance with the instructions issued from time to time:
Provided that the delay in payment was not caused on account of failure on the part of the railway servant to comply with the procedure laid down by the Government for processing his pension papers.
[Authority: RBE No.70/2016, No.2015/F(E)III/1(1)/4, 17.06.2016]
(2) Every case of delayed payment of gratuity shall be considered by the General Manager or Administrative Head of the Railway Unit, as the case may be, and where the said General Manager or Administrative Head is satisfied that the delay in the payment of gratuity was caused on account of administrative reasons or lapse, he shall order for arranging the payment of interest. The powers to pass order for payment of interest on delayed payment of death-cum-retirement gratuity shall rest with General Manager or Administrative Head of the Railway Unit and shall not be delegated to any lower authority. [Authority: RBE No.70/2016, No.2015/F(E)III/1(1)/4, 17.06.2016]
(3) In all cases where the payment of interest has been ordered, the railway shall fix the responsibility and take disciplinary action against the railway servant or servants concerned who are found responsible for the delay in the payment of gratuity on account of administrative lapses.
[Authority: RBE No.70/2016, No.2015/F(E)III/1(1)/4, 17.06.2016]
(4) If as a result of Government’s decision taken subsequent to the retirement of a railway servant, the amount of gratuity already paid on his retirement is enhanced on account of-
(a) Grant of emoluments higher than the emoluments on which gratuity already paid was determined, or
(b) Liberalization in the provisions of these rules from a date prior to the date of retirement of the railway servant concerned, no interest on the arrears of gratuity shall be paid.
(5) Gratuity becomes due immediately on retirement and in case of a railway servant dying in service, action for finalizing his pension and death-cum-retirement gratuity shall be paid.