{"id":3380,"date":"2026-06-08T11:02:23","date_gmt":"2026-06-08T05:32:23","guid":{"rendered":"https:\/\/www.sgcms.com\/regulatory-updates\/?p=3380"},"modified":"2026-06-08T12:16:53","modified_gmt":"2026-06-08T06:46:53","slug":"3380-2","status":"publish","type":"post","link":"https:\/\/www.sgcms.com\/regulatory-updates\/3380-2\/","title":{"rendered":"Centre Notifies 12% Simple Interest on Delayed Dues Under the Code on Social Security, 2020"},"content":{"rendered":"
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This is a Ministry of Labour and Employment notification (S.O. 2698(E)<\/strong>), published in the Gazette of India on 29 May 2026 and issued under Section 127 of the Code on Social Security, 2020<\/strong>.<\/p>\n

The substance is a single specification: an employer is liable to pay simple interest at 12% per annum<\/strong> on any amount due from him under the Code, calculated from the date the amount became due until the date of its actual payment.<\/p>\n

The key practical point is the effective date \u2014 the notification is deemed to have come into force on 21 November 2025<\/strong>, the date the Labour Codes were operationalised. So it applies retrospectively across the entire period since the Code commenced, rather than only from the date of publication.<\/p>\n

A couple of things worth flagging for compliance use:<\/p>\n