State-specific compliance
Payment of Gratuity in Himachal Pradesh
How Payment of Gratuity applies to a business operating in Himachal Pradesh, with state-specific authority, citations and current deadlines.
Definition
Payment of Gratuity as it applies to businesses operating in Himachal Pradesh. Establishments with 10+ employees must pay gratuity (15 days of wages for every completed year) on superannuation, resignation (after 5 years) or death/disablement. Maximum gratuity is Rs 20 lakh.
- SourcePayment of Gratuity Act, 1972 (subsumed under Social Security Code 2020) — Sections 4, 4Alabour.gov.in
What it means in practice
Payment of Gratuity is a central regulation that applies uniformly across India, including Himachal Pradesh. In Himachal Pradesh, the day-to-day administering authority and the office where filings are submitted will be Ministry of Labour & Employment.
Compulsory insurance via LIC or recognised insurer under Sec 4A — relevant for new establishments. Fixed-term employees now get pro-rata gratuity without 5-year requirement.
- SourcePayment of Gratuity Act, 1972 (subsumed under Social Security Code 2020) — Sections 4, 4Alabour.gov.in
Does Payment of Gratuity apply to your business in Himachal Pradesh?
Deadlines and penalty
Cadence: ongoing
Penalty for default: Non-payment: imprisonment 6 months-2 years + fine Rs 10,000-20,000. Late payment attracts simple interest at govt-notified rate.
Citations
- SourcePayment of Gratuity Act, 1972 (subsumed under Social Security Code 2020) — Sections 4, 4Alabour.gov.in