Social Security Code: 12% Interest on Delayed Dues

What the Gazette specifies

Social Security Code interest on delayed employer dues is addressed by the Ministry of Labour and Employment in Gazette notification S.O. 2698(E), dated 29 May 2026. Exercising the power in section 127 of the Code on Social Security, 2020, the Central Government specifies simple interest at 12% per annum on an amount due from an employer under the Code. The period runs from the date that amount became due until the date of actual payment. The notification says it is deemed to have come into force on 21 November 2025.

How employers should use this notice

This notice specifies an interest rate; it is not, by itself, a schedule of every social-security contribution or filing deadline. Before calculating interest, establish whether the relevant provision of the Code applies to the establishment and the particular amount. Identify the amount, its legally applicable due date, the actual payment date and any scheme-specific instructions. Keep a calculation record that distinguishes principal from interest. If a payment is disputed or an earlier period is involved, obtain a case-specific review rather than applying this summary mechanically.

Dates and scope

The Gazette was issued on 29 May 2026 and expressly gives the notification deemed effect from 21 November 2025. The 12% figure is an annual simple interest rate, not a monthly rate or compound-interest formula. The operative text refers to any amount due from the employer under the Code, so the nature of the liability and the due date must be determined from the applicable legal provisions. This page does not assert that every private establishment has the same contribution obligation or payment schedule.

Check the controlling document

Read the official Gazette PDF for S.O. 2698(E) before using the rate in a payment or compliance decision. The original notification and any later amendment or authoritative clarification take precedence over this employer-facing explanation. ComplianceHub should retain the source PDF as a public document attachment and record the last verification date when this item is approved for publication.