Prescribed Rate of Interest (late payment)
Prescribed Rate of Interest (late payment)
The legal interest rate you can charge on an overdue debt when no rate was agreed -- set under the Prescribed Rate of Interest Act. Distinct from the SARS interest rates. Always quote it with its effective date.
Prescribed rate of interest (mora interest)
| Current rate | 10.50% per annum |
| Effective from | 1 September 2025 (Government Notice R6668 of 2025) |
| How it is set | Repo rate + 3.5%, gazetted by the Minister of Justice |
| What it is for | Interest on an overdue debt where no contractual rate was agreed (e.g. an unpaid invoice) |
Do not confuse it with the SARS rates
| SARS interest on outstanding tax | 10.25% per annum from 1 March 2026 (a separate rate, Table 1) |
| SARS official / fringe-benefit rate | 8.00% per annum from 1 June 2026 (repo + 1%, Table 3) |
Guidance only -- not legal advice. The prescribed rate moves with the repo rate, so always state the rate WITH its effective date, and re-check before charging interest on a debt. Verify the current gazette at justice.gov.za.
Sources: Prescribed Rate of Interest Act (GN R6668 of 2025) · SARS Interest Rates Table 1 and Table 3
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