Government Notifies Interest and Inspection Charges Under Social Security Code

Notification No. S.O. 2698(E), Dated: 29.05.2026

The Ministry of Labour and Employment has issued a notification prescribing the rate of interest payable on delayed dues under the Code on Social Security, 2020 and notifying inspection charges applicable to certain exempted establishments under the Employees’ Provident Fund and Employees’ Deposit-Linked Insurance frameworks.

The notification seeks to strengthen compliance and ensure the timely payment of statutory obligations under the social security regime.

1. Interest on Delayed Payments Fixed at 12% Per Annum

The Ministry has notified that employers shall be liable to pay simple interest at 12% per annum on amounts due under the Code on Social Security, 2020.

The interest shall be calculated:

• From the date on which the amount becomes due; and
• Up to the date of actual payment

Accordingly, any delay in payment of statutory dues under the Code will attract interest at the prescribed rate.

2. Applicability to Amounts Due Under the Code

The notified rate of interest applies to amounts payable under the provisions of the Code on Social Security, 2020.

The measure is intended to encourage timely compliance and compensate for delays in remittance of statutory social security contributions and related dues.

3. Inspection Charges Prescribed for Exempted Establishments

The notification also prescribes inspection charges payable by exempted establishments operating under:

• The Employees’ Provident Fund Scheme, 1952; and
• The Employees’ Deposit-Linked Insurance Scheme, 1976

These charges are payable in accordance with the prescribed framework governing exempted establishments.

4. Applicability to Exempted Establishments

The inspection charges apply to establishments that have been granted exemption under the relevant provident fund and insurance schemes and are subject to regulatory inspection and oversight.

The charges are intended to cover administrative and supervisory functions relating to monitoring compliance by exempted entities.

5. Objective of the Notification

The notification aims to strengthen compliance under the Code on Social Security, 2020, by prescribing a uniform interest rate for delayed payments and formalising inspection charges applicable to exempted establishments.

The measures are intended to ensure timely payment of statutory dues, support effective regulatory oversight and facilitate efficient administration of social security schemes.

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