The legal interest rate is revised on an annual basis according to a rule decided by law.
Since 1970, the legal interest rate evolved as follows:
|
Period |
% |
|
From 01-07-1970 to 31-10-1974 |
6,5% |
|
From 01-11-1974 to 31-07-1981 |
8% |
|
From 01-08-1981 to 31-07-1985 |
12% |
|
From 01-08-1985 to 31-07-1986 |
10% |
|
From 01-08-1986 to 31-08-1996 |
8% |
|
From 01-09-1996 to 31-12-2006 |
7% |
|
From 01-01-2007 to 31-12-2007 |
6% |
|
From 01-01-2008 to 31-12-2008 |
7% |
|
From 01-01-2009 to 31-12-2009 |
5,5% |
|
From 01-01-2010 to 31-12-2010 |
3,25% |
|
From 01-01-2011 to 31-12-2011 |
3,75% |
|
From 01-01-2012 to 31-12-2012 |
4,25% |
|
From 01-01-2013 to 31-12-2013 |
2,75% |
|
From 01-01-2014 to 31-12-2014 |
2,75% |
|
From 01-01-2015 to 31-12-2015 |
2,50% |
|
From 01-01-2016 to 31-12-2016 |
2,25% |
|
From 01-01-2017 to 31-12-2017 |
2% |
|
From 01-01-2018 to 31-12-2018 |
2% |
|
From 01-01-2019 to 31-12-2019 |
2% |
|
From 01-01-2020 to 31-12-2020 |
1.75% |
|
From 01-01-2021 to 31-12-2021 |
1.75% |
|
From 01-01-2022 to 31-12-2022 |
1.50% |
|
From 01-01-2023 to 31-12-2023 |
5,25% |
Whoever forgets or neglects to pay an employee's wages which he/she is entitled to or does not immediately pay the severance indemnity after a dismissal, will be sentenced to pay that amount, plus interest charges calculated at the above rate. These interest charges must be calculated based on the gross amounts from the time when they were due.
Action point
For the year 2023 you have to take into account a legal interest rate of 5.25%.
Originally published 1 January 2023.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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