Automatic Enrolment Retirement Savings System Act 2024 section 138

Interest on arrears of contributions

Section 138 sets out the formula for calculating interest on employer contributions that remain unpaid after their due date, and provides for the evidential status of certificates in related proceedings.

• Interest accrues on any unpaid employer contribution from the date it falls due until the date it is actually paid, calculated using the formula: Contribution × Days Unpaid × 0.0274% (a daily rate equating to approximately 10% per annum).
• Interest is payable gross (without deduction of income tax) and cannot be claimed as a deductible expense for any tax purpose under the Tax Acts.
• Interest owed is treated as a debt due to the Authority and must be paid directly to it.
• In enforcement proceedings, a certificate signed by an authorised officer stating the amount of interest due is accepted as evidence of that debt unless the employer proves otherwise, and the certificate is presumed validly signed unless challenged.