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State-specific compliance

Payment of Gratuity in Maharashtra

How Payment of Gratuity applies to a business operating in Maharashtra, with the state-level authority, citations and the next deadline.

Check this for your businessThe Compliance module

Information, not legal advice. Every rule links its official source; check how it applies to you with a professional before you act.

Definition

Payment of Gratuity as it applies to businesses operating in Maharashtra. 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, 4A
    labour.gov.in

What it means in practice

Payment of Gratuity is a central regulation that applies uniformly across India, including Maharashtra. In Maharashtra, 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, 4A
    labour.gov.in

Does Payment of Gratuity apply to your business in Maharashtra?

FacetConditionApplies
State coverageCentral regulation: applies in all states and union territories
Sector coverageApplies across all sectorsDepends
Employee threshold10+ employeesDepends

Deadlines and penalty

Cadence
Ongoing · Continuous
Next due
No fixed date Ongoing duty
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.

This obligation has no fixed calendar date: it depends on when you start, your licence date or your registration.

Citations

  • SourcePayment of Gratuity Act, 1972 (subsumed under Social Security Code 2020) · Sections 4, 4A
    labour.gov.in

Related

Payment of Gratuity in other states