Anganwadi workers' gratuity entitlement extends under welfare law, with simple interest payable on delayed gratuity.

Anganwadi workers and Anganwadi helpers under the ICDS scheme are treated as covered by the Payment of Gratuity Act, 1972 because the Act is welfare legislation requiring liberal construction, the centres perform statutory welfare and pre-school education functions, and the remuneration paid as honorarium falls within the broad definitions of "employee" and "wages". The gratuity law applies to the centres as establishments under the relevant provisions, and the earlier civil service reasoning was held not controlling. Eligible workers are also entitled to simple interest on delayed gratuity, with interest stated at 10% per annum.

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Issues: (i) Whether Anganwadi workers and Anganwadi helpers working in Anganwadi centres under the ICDS scheme are entitled to gratuity under the Payment of Gratuity Act, 1972. (ii) Whether the eligible beneficiaries are entitled to simple interest on delayed payment of gratuity.

Issue (i): Whether Anganwadi workers and Anganwadi helpers working in Anganwadi centres under the ICDS scheme are entitled to gratuity under the Payment of Gratuity Act, 1972.

Analysis: The Payment of Gratuity Act, 1972 is a social security welfare legislation and its provisions require a liberal and beneficial construction. Anganwadi centres were treated as establishments engaged in statutory functions, especially after the statutory recognition of anganwadi services under the National Food Security Act, 2013 and the duties prescribed under the State framework. The definition of "employee" under Section 2(e) and "wages" under Section 2(s) is wide enough to include the remuneration styled as honorarium. The centres also answer the description of an establishment under Section 1(3)(b), and in the alternative fall within Section 1(3)(c) in view of the notification covering educational institutions, since pre-school education is conducted there. The reasoning in the earlier civil service/civil post case was held not to govern the gratuity issue.

Conclusion: Yes. Anganwadi workers and Anganwadi helpers are covered by the Payment of Gratuity Act, 1972 and are entitled to gratuity.

Issue (ii): Whether the eligible beneficiaries are entitled to simple interest on delayed payment of gratuity.

Analysis: Once gratuity was held payable under the Act, the statutory consequence relating to delayed payment also followed. The order accepted the grant of simple interest on the overdue gratuity amounts under the relevant statutory provision governing delayed payment.

Conclusion: Yes. Eligible Anganwadi workers and Anganwadi helpers are entitled to simple interest at 10% per annum on delayed gratuity.

Final Conclusion: The impugned judgment of the High Court was set aside, and the decision in favour of the Anganwadi workers and helpers was restored with consequential relief under the gratuity .

Ratio Decidendi: Where an Anganwadi centre performs statutory welfare and educational functions and the workers are paid remuneration for such service, the centre may constitute an establishment under the gratuity law and the workers may be treated as employees receiving wages for the purpose of gratuity entitlement.

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