The statutory late payment interestStatutory interest a business can claim on overdue invoices from other businesses or public bodies under the European Communities (Late Payment in Commercial Transactions) Regulations 2012 (S.I. No. 580 of 2012). rate that Irish companies can charge on late commercial payments rose to 10.40% a year on 1 July 2026, according to the Department of Enterprise, Tourism and Employment (DETE). It had been 10.15% for the previous twelve months. The new rate applies until 31 December 2026. For the rules on claiming it, see our guide to late payment interest in Ireland.

Why the late payment interest rate changed

Under the European Communities (Late Payment in Commercial Transactions) Regulations 2012 (S.I. No. 580 of 2012), the rate is the European Central Bank's main refinancing rate plus 8 percentage points. The ECBThe key interest rates set by the ECB for the euro area, including the main refinancing rate and deposit facility rate. rate in force on 1 January and 1 July sets the late payment rate for the following six months.

On 1 July 2026 the ECB main refinancing rate was 2.40%, so the late payment rate is 10.40%. DETE publishes the history of the rate:

  • From 1 July 2026: 10.40% (ECB rate 2.40%)
  • From 1 January 2026: 10.15% (ECB rate 2.15%)
  • From 1 July 2025: 10.15% (ECB rate 2.15%)
  • From 1 January 2025: 11.15% (ECB rate 3.15%)

This is the first rise in the rate since 2024, reflecting the ECB's move on its own rates. For more on how ECB decisions feed through, see our glossary entry on ECB rates.

What it means for Irish limited companies

If another business pays your company late, you are entitled to late payment interest on the amount outstanding. A contract term that excludes late payment interest is presumed to be grossly unfair. Interest runs daily: the annual rate divided by 365, multiplied by the number of days late.

When interest starts depends on the terms:

  • No agreed payment date: 30 days after the customer receives your invoice (or after delivery, if that is later or the receipt date is uncertain).
  • Agreed payment date between businesses: the contractual date applies. A term longer than 60 days must be expressly agreed and must not be grossly unfair to the supplier.
  • Public authorities: the agreed date applies but cannot exceed 30 days.

On top of interest, you can claim fixed compensation for recovery costs for each late invoice: €40 for invoices up to €1,000, €70 for invoices over €1,000 up to €10,000, and €100 for invoices over €10,000. No reminder is needed before you become entitled to it.

Illustrative example: a €10,000 invoice is paid 30 days late. Interest at 10.40% is €10,000 × 10.40% ÷ 365 × 30, which is about €85. The company could also claim €70 compensation, so about €155 in total. These figures are round and for illustration only.

Your contract can set a different arrangement, but a payment period of more than 60 days between businesses must be expressly agreed and must not be grossly unfair to the supplier. The 2012 regulations were amended in 2013, 2014 and 2016 and give effect to EU Directive 2011/7 on combating late payment. If your customer is a public authority, the 30-day limit applies and statutory interest can still be claimed when it pays late.

The amounts are often small next to the cost of waiting. A company that is owed tens of thousands of euro for 60 or 90 days may still struggle to pay wages, suppliers or Revenue on time. Interest compensates you; it does not put cash in the bank today.

What to do now

  1. Update your invoice template and terms to state your payment period and that statutory interest and compensation apply to late payment.
  2. Use 10.40% for any invoice that falls overdue between 1 July and 31 December 2026, and check DETE's page for the rate from 1 January 2027.
  3. Keep a record of invoice dates, delivery dates and when the customer received each invoice.
  4. Send a clear statement showing the interest and compensation owed. Many customers pay once they see you know your rights.
  5. Review your own payment terms with suppliers so you are not paying faster than your customers pay you.
  6. Take legal advice before issuing proceedings. DETE does not give legal advice on individual cases.

Our full guide to late payment interest on business invoices explains the rules in more depth, including how to make a claim. If slow payers are a constant problem, our guide to invoice finance: factoring vs discounting explains how that kind of facility works, and our guide to overdraft alternatives covers other short-term options.

How Welcome Finance can help

Where a gap in cash flow is the issue, our panel can consider working capital loans and short-term business loans. Tell us what your company needs and we'll tell you honestly whether our panel can help, or where to apply instead. Welcome Finance is a commercial finance broker, not a lender, and is not regulated by the Central Bank of IrelandIreland's financial regulator and part of the Eurosystem.. We work only with companies registered in Ireland (LTD, DACA type of Irish private company under Part 16 of the Companies Act 2014 that keeps an objects clause in its constitution, limiting what it can do, and uses the suffix DAC., PLCA company type under Part 17 of the Companies Act 2014., ULCA company under Part 19 of the Companies Act 2014 whose members have unlimited liability for its debts.) and are paid commission by lenders. We do not charge your company a fee and never ask for payment upfront.