The Ministry of Labour and Employment, vide Notification S.O. 2698(E), has specified the rate of simple interest payable by employers under Section 127 of the Code on Social Security, 2020. As per the notification, employers shall be liable to pay simple interest at the rate of 12% per annum on any amount due under the Code from the date the amount becomes payable until the date of actual payment. The notification is deemed to have come into force with effect from 21 November 2025. This measure aims to promote timely compliance with statutory payment obligations and strengthen the enforcement framework under the Code on Social Security, 2020. Employers, compliance officers, payroll administrators, and labour law professionals should review their payment processes to ensure adherence to the prescribed requirements and avoid additional financial liabilities arising from delayed payments.