The Ministry of Labour and Employment (MoLE), on May 29, 2026, notified the rate of interest payable by employers on any amount due under the Code on Social Security, 2020. Exercising its powers under Section 127 of the Code, the Central Government has specified that employers shall be liable to pay simple interest at the rate of 12% per annum on any amount due under the Code.
The interest shall be calculated from the date on which the amount became due and shall continue to accrue until the date of actual payment. This provision is intended to ensure timely compliance with statutory payment obligations under the Social Security Code and to discourage delays in remittances by employers.
The notification further provides that it shall be deemed to have come into force with effect from November 21, 2025, thereby giving the prescribed rate of interest retrospective effect from the date on which the Code on Social Security, 2020 came into operation.
[Notification No. S.O. 2698(E)]
