Under the Code on Social Security, 2020, the amount due under the Code, if not paid by the employer within the prescribed time, may be recovered together with interest, and the rate of interest on delayed payment of any contribution shall not exceed what rate per annum?

Section 128 of the Code on Social Security, 2020 provides for the payment of interest on delayed contributions. Where an employer fails to pay any contribution which he is liable to pay under the Code within the periods specified, he is liable to pay simple interest at the rate of twelve per cent per annum, or at such higher rate as may be specified in the scheme, from the date on which the contribution becomes payable until the date of actual payment. In addition, the authorities may levy and recover damages for default. This provision incentivises timely payment of contributions and protects the interests of employees whose social security benefits depend on such deposits.