The UK and every EU country give a business a legal right to interest on a late invoice, and a fixed sum on top, whether or not the contract mentions them.
The rate is a central bank rate plus a margin, usually 8 points, so it changes. Each country below links to where the current one is published.
In the US, Canada, Australia, New Zealand and Singapore we found no general rule like that: interest comes from the contract, apart from construction and government clients. Some US states protect freelancers instead, with double damages for late payment.
Japan caps the time a client may take to pay a freelancer at 60 days.

How to use this

Statutory interest is a right, not a duty. You can charge it, or say in a reminder that it is now running and leave it there. If you do claim it, the late payment interest calculator works out the amount from the rate you look up, and the final notice letter generator puts the interest and the fixed sum into the last letter before you hand the debt on.

These rules are for debts between businesses. Selling to consumers is covered by different rules in every country here.

Compared

Country	Interest	Fixed sum	Payment terms
United Kingdom	Base rate + 8	£40 / £70 / £100	30 days; usually 60 max
EU directive	Reference rate + 8 (minimum)	At least €40	30 days; 60 max
Ireland	ECB + 8	€40 / €70 / €100	30 days; 60 max
Germany	Base rate + 9	€40	30 days; 60 max
France	Contract rate, or ECB + 10	€40	30 days; 60 max
Netherlands	ECB + 8, compounding yearly	At least €40	30 days; 60 max
Spain	ECB + 8	€40	30 days; 60 max, no exceptions
Italy	ECB + 8	€40	30 days; 60 max
Belgium	ECB + 8, rounded up	€40	30 days; 60 max
Austria	Base rate + 9.2	€40	60 days max
Sweden	Reference rate + 8	SEK 450	30 days unless agreed
New York State	None; double damages	Double damages	30 days after the work
New York City	None; double damages	Double damages	30 days after the work
California	None; up to double damages	Up to double damages	30 days after the work
Illinois	None set	—	30 days after the work
US federal clients	Treasury rate	Penalty if interest is skipped	30 days
Canada	Construction only	—	28 days (construction)
Australia	Contract only	—	No general limit
New Zealand	Contract or court	—	Construction only
Japan	14.6% (取適法) or Civil Code rate	—	60 days max
Singapore	Construction only	—	Construction only

"Base rate + 8" means 8 percentage points over the country's reference rate: a reference rate of 2% gives 10% a year. "Payment terms" is the default when the contract sets no date, then the longest a contract may usually set.

UK and Europe

United Kingdom

Late Payment of Commercial Debts (Interest) Act 1998

Who it covers. Contracts for goods or services between two businesses, including public bodies as buyers. Consumers are not covered.
Interest. 8 percentage points over the Bank of England base rate (Bank Rate), simple. The base rate on 30 June sets the rate for debts that become late from 1 July to 31 December, and the rate on 31 December for those from 1 January to 30 June. The rate in force: Bank of England: Bank Rate.
Fixed sum. £40 on a debt under £1,000, £70 from £1,000 to under £10,000, and £100 on £10,000 or more, plus reasonable recovery costs above that.
Payment terms. If no date is agreed, payment is late 30 days after the customer gets the invoice or the goods or services, whichever is later. An agreed date must usually be within 60 days between businesses, and 30 days for public authorities.
The interest and the fixed sum are implied into the contract, so they apply whether or not the invoice mentions them.
A contract can replace statutory interest only with a "substantial remedy" of its own (s.8). The same figures apply in Scotland, set by Scottish orders.

Sources: Late Payment of Commercial Debts (Interest) Act 1998; The Act, section 5A (the fixed sums); Rate of Interest (No. 3) Order 2002; GOV.UK: charging interest on commercial debt.

European Union (the directive)

Directive 2011/7/EU on combating late payment in commercial transactions

Who it covers. Payments between businesses, and from public authorities to businesses. Consumers are not covered. Each member state writes it into its own law and may go further, as the countries below show.
Interest. At least 8 percentage points over the reference rate, simple. In the euro area the reference rate is the ECB's main refinancing rate: the rate on 1 January applies for the first half of the year, the rate on 1 July for the second. The rate in force: ECB: key interest rates.
Fixed sum. At least €40 per late payment, plus reasonable recovery costs above that.
Payment terms. 30 days after the invoice if the contract sets no date. Between businesses, more than 60 days only if expressly agreed and not grossly unfair to the supplier. Public authorities: 30 days, 60 at most in limited cases.
Interest runs without a reminder once the supplier has done its part and the payment is late.
A term excluding interest or the €40 is to be treated as grossly unfair, so neither can be freely contracted away.

Sources: Directive 2011/7/EU (EUR-Lex).

Ireland

European Communities (Late Payment in Commercial Transactions) Regulations 2012 (S.I. No. 580 of 2012)

Who it covers. Commercial transactions between businesses, and between businesses and public authorities, made from 16 March 2013. Consumers are not covered.
Interest. 8 percentage points over the ECB main refinancing rate, unless the contract says otherwise. The rate before 1 January applies to 30 June, and the rate before 1 July to 31 December. The rate in force: Department of Enterprise: late payment interest rate.
Fixed sum. €40 on a debt up to €1,000, €70 up to €10,000, and €100 above that, without a reminder and without proof of cost.
Payment terms. 30 days after the invoice if the contract sets none. More than 60 days must be expressly agreed and not grossly unfair to the supplier. Public authorities: 30 days as standard.
Interest and compensation are implied terms, so they apply even if the invoice says nothing about them.

Sources: S.I. No. 580 of 2012 (Irish Statute Book); Department of Enterprise: late payment interest rate.

Germany

Bürgerliches Gesetzbuch (BGB), §§ 271a, 286, 288

Who it covers. Claims for payment where no consumer is involved. Consumers are owed a lower rate, 5 points over the base rate.
Interest. 9 percentage points over the Basiszinssatz (§ 288 Abs. 2), the base rate the Bundesbank publishes on 1 January and 1 July. No interest on interest (§ 289). The rate in force: Deutsche Bundesbank: Basiszinssatz.
Fixed sum. A flat €40 (§ 288 Abs. 5), on top of the interest, when the debtor is not a consumer.
Payment terms. The debtor is in default at the latest 30 days after the due date and receipt of the invoice (§ 286 Abs. 3). More than 60 days only if expressly agreed and not grossly unfair to the creditor (§ 271a).
No reminder is needed once the 30 days in § 286 Abs. 3 have run.

Sources: § 288 BGB; § 286 BGB; § 271a BGB.

France

Code de commerce, articles L441-10 and D441-5

Who it covers. Payments between professionals. Consumers are not covered.
Interest. The rate in the supplier's terms, which cannot be less than three times the legal interest rate. If the terms set none, the ECB's most recent refinancing rate plus 10 percentage points. The rate in force: ECB: key interest rates.
Fixed sum. A flat €40 per unpaid invoice (D441-5), with further costs on proof.
Payment terms. 30 days after the goods or service if nothing is agreed. At most 60 days from the invoice date, or 45 days end of month if expressly agreed. Some sectors have their own limits.
The payment terms, the penalty rate and the €40 must be stated in the supplier's terms and on the invoice, and fines for breaking the payment-term rules reach €2 million for a company.
Légifrance shows a new version of L441-10 taking effect on 1 January 2027; check it from that date.

Sources: Article L441-10 (Légifrance); Service-Public: payment terms between professionals.

Netherlands

Burgerlijk Wetboek Boek 6, articles 6:96, 6:119a, 6:119b and 6:120

Who it covers. Contracts between businesses and self-employed people, and with government bodies. Consumers are owed the ordinary statutory rate instead.
Interest. The wettelijke handelsrente: the ECB main refinancing rate plus 8 percentage points, set for each half-year (6:120). Unusually, it compounds: each year the unpaid interest is added to the debt (6:119a lid 3). The rate in force: Rijksoverheid: hoogte wettelijke rente.
Fixed sum. Collection costs of at least €40, due without a reminder from the day after the due date (6:96 lid 4), rising on a sliding scale with the size of the debt.
Payment terms. Interest is due from 30 days after the invoice if no date is agreed. Up to 60 days may be agreed, longer only if not manifestly unreasonable. A large company paying a small business or self-employed person may agree no more than 30 days (6:119a lid 6).
The 30-day limit for large companies paying freelancers and small businesses is stricter than the directive.

Sources: Burgerlijk Wetboek Boek 6 (wetten.overheid.nl); Business.gov.nl: payment terms, collection charges and statutory interest.

Spain

Ley 3/2004 de lucha contra la morosidad en las operaciones comerciales

Who it covers. Commercial operations between companies, between companies and the public administration, and between main contractors and their subcontractors. Consumers are not covered.
Interest. The contract rate if agreed. Otherwise the ECB main refinancing rate before the half-year plus 8 percentage points (art. 7), which the Ministry publishes in the BOE each half-year. The rate in force: BOE: the rate for the second half of 2026.
Fixed sum. A flat €40, added to the debt without asking (art. 8), plus proven recovery costs above it.
Payment terms. 30 days after the goods or service, and the supplier must send the invoice within 15 days. The parties can agree longer, but never more than 60 days (art. 4).
Interest runs automatically, without a reminder (art. 5).

Sources: Ley 3/2004 (BOE, consolidated).

Italy

Decreto legislativo 9 ottobre 2002, n. 231, as amended by D.Lgs. 192/2012

Who it covers. Transactions between businesses, and between businesses and public administrations. Consumers are not covered.
Interest. The ECB reference rate plus 8 percentage points, as simple interest counted by the day. The rate on 1 January applies for the first half of the year and on 1 July for the second; the Ministry of Economy publishes it in the Gazzetta Ufficiale. The rate in force: Gazzetta Ufficiale: rate from 1 July 2026.
Fixed sum. A flat €40 (art. 6), owed without formal notice, plus proven greater costs.
Payment terms. 30 days after the invoice. More than 60 days must be expressly agreed in writing and not grossly unfair. Where a small business is owed by a larger one, a term over 60 days is presumed grossly unfair.
A clause excluding late interest is void, and the court can say so of its own motion.

Sources: D.Lgs. 231/2002 (Normattiva).

Belgium

Loi du 2 août 2002 / Wet van 2 augustus 2002 concernant la lutte contre le retard de paiement dans les transactions commerciales

Who it covers. Commercial transactions between businesses, and between businesses and public authorities. Consumers have a separate set of rules.
Interest. The ECB main refinancing rate plus 8 percentage points, rounded up to the next half point, unless agreed otherwise (art. 5). The Finance Minister publishes it in the Moniteur belge for each half-year.
Fixed sum. A flat €40, added by law without formal notice, plus reasonable further recovery costs (art. 6).
Payment terms. 30 days after the invoice if nothing is agreed. Up to 60 days may be agreed; a clause for longer is treated as not written (art. 4).
There is no single official page for the current rate: it appears as a notice in the Moniteur belge each half-year.

Sources: Loi du 2 août 2002 (Justel).

Austria

Unternehmensgesetzbuch (UGB), §§ 456 and 458

Who it covers. Transactions between businesses, and between businesses and public bodies. Consumers are owed the general 4% rate.
Interest. 9.2 percentage points over the Basiszinssatz, the base rate the Oesterreichische Nationalbank publishes. The rate on the first day of each half-year applies for that half-year. The rate in force: OeNB: Basiszinssatz.
Fixed sum. A flat €40 for collection costs (§ 458), plus necessary further costs.
Payment terms. Up to 60 days between businesses is not treated as grossly unfair; longer terms can be challenged.
These rules apply to contracts made from 16 March 2013.

Sources: Unternehmensserviceportal: Vertragsrecht; OeNB: Basiszinssatz.

Sweden

Räntelag (1975:635) and lag (1981:739) om ersättning för inkassokostnader

Who it covers. Claims for goods or services between businesses, and on public bodies. Consumers are not covered by the business rate or the fixed sum.
Interest. The Riksbank's reference rate plus 8 percentage points (6 §). Between businesses it runs from 30 days after the invoice was sent, whether or not the invoice says so. The rate in force: Riksbank: referensränta.
Fixed sum. A flat SEK 450 (förseningsersättning). Reminder and demand fees can be charged only as far as they come to more than that.
Payment terms. Payment is due 30 days after the demand. Between businesses a later date is allowed only if the creditor expressly agrees to it.
A clause removing late interest between businesses has no effect against the creditor (4 a §).

Sources: Räntelag (1975:635); Lag (1981:739) om ersättning för inkassokostnader.

United States and Canada

New York State

Freelance Isn't Free Act, General Business Law Article 44-A (from 28 August 2024)

Who it covers. Freelancers (a person or one-person business working as an independent contractor) paid $800 or more by one client, counting everything from that client over 120 days. Some trades are excluded, and so are government clients.
Interest. The Act sets no interest rate. Its remedy is damages instead.
Fixed sum. A freelancer who wins a late-payment claim gets double damages, plus attorneys' fees and costs.
Payment terms. The contract must be in writing. If it names no payment date, payment is due within 30 days of finishing the work.
Once the work has started, the client cannot make paying on time depend on the freelancer accepting less.

Sources: GBL Article 44-A (NY Senate); NY Department of Labor: Freelance Isn't Free Act.

New York City

Freelance Isn't Free Act, Local Law 140 of 2016 (from 15 May 2017)

Who it covers. Freelancers whose contracts with one client come to $800 or more over 120 days.
Interest. No interest rate; the remedy is damages.
Fixed sum. Double the amount unpaid, plus attorneys' fees and costs. The city can seek a civil penalty of up to $25,000 for a pattern of violations.
Payment terms. Contracts of $800 or more must be in writing. With no payment date, payment is due within 30 days of finishing the work.
Complaints go to the city's Department of Consumer and Worker Protection.

Sources: NYC DCWP: freelance workers; NYC DCWP: Freelance Isn't Free Act.

California

Freelance Worker Protection Act (SB 988), for contracts made or renewed from 1 January 2025

Who it covers. Freelancers (a person or one-person business providing professional services as an independent contractor) paid $250 or more by one client over 120 days. Government clients, and people hiring for their own household, are not covered.
Interest. No interest rate; the remedy is damages.
Fixed sum. Damages of up to twice the amount unpaid when it was due, plus attorneys' fees and costs.
Payment terms. The contract must be in writing. If it is silent on timing, payment is due within 30 days of finishing the work.
The client must keep the written contract for four years.

Sources: SB 988 (California Legislative Information).

Illinois

Freelance Worker Protection Act, 820 ILCS 193 (from 1 July 2024)

Who it covers. Independent contractors paid $500 or more over 120 days, for work in Illinois or for an Illinois client.
Interest. No interest rate is set on the state's summary of the Act.
Payment terms. The contract must be in writing and state the payment date. With none stated, payment is due within 30 days of finishing the work.
Complaints go to the Illinois Department of Labor.

Sources: Illinois Department of Labor: Freelance Worker Protection Act.

United States: federal government clients

Prompt Payment Act, 31 U.S.C. chapter 39, and 5 CFR Part 1315

Who it covers. Businesses selling to federal executive agencies. It does not cover private clients or state and local governments.
Interest. The rate the Treasury sets every six months (the Contract Disputes Act rate), from the day after the due date. Interest unpaid after 30 days is added to the debt, for up to a year. The agency must add it without being asked. The rate in force: Treasury: Prompt Payment interest rate.
Fixed sum. If the agency pays late without the interest, a penalty of 100% of that interest, at least $25 and at most $5,000, if you ask for it in writing within 40 days.
Payment terms. 30 days after a proper invoice if the contract sets no date.

Sources: 31 U.S.C. 3902; 5 CFR Part 1315 (eCFR).

Canada

Federal Prompt Payment for Construction Work Act; Ontario Construction Act, Part I.1

Who it covers. Construction work only. We found no Canadian law giving interest on an ordinary late invoice for services; that comes from the contract.
Interest. Federal construction: simple interest at the average Bank of Canada bank rate plus 3% a year. Ontario construction: the court prejudgment rate, or the contract rate if higher. The rate in force: Bank of Canada: bank rate.
Payment terms. Federal construction: the Crown pays within 28 days of a proper invoice, the contractor pays its subcontractors by day 35 and they pay theirs by day 42. Ontario construction: the owner pays within 28 days, and each tier pays the next within 7 days of being paid.
Ontario publishes its court interest rates on a page of its own, linked below.

Sources: Federal Prompt Payment for Construction Work Act; Federal regulations, SOR/2023-269; Ontario Construction Act; Ontario: prejudgment and postjudgment interest rates.

Asia-Pacific

Australia

Payment Times Reporting Act 2020; state Security of Payment Acts (construction)

Who it covers. We found no Australian law giving interest on an ordinary late invoice. Business.gov.au advises putting an interest rate in a letter of demand only if the contract set one.
Interest. Interest comes from the contract, or from a court. In construction, the state Security of Payment Acts add their own: in New South Wales, the contract rate or the court rate, whichever is higher.
Payment terms. No general limit. Large businesses (A$100 million revenue or more) must report how fast they pay small suppliers under the Payment Times Reporting Scheme, and the regulator lists those paying within 20 days.
The Payment Times Reporting Scheme publishes how large businesses pay; it does not enforce individual invoices.

Sources: business.gov.au: write a letter of demand; Payment Times Reporting Regulator: helping small business; NSW Government: making a payment claim.

New Zealand

Interest on Money Claims Act 2016; Construction Contracts Act 2002

Who it covers. We found no New Zealand law giving interest on an ordinary late invoice.
Interest. Interest comes from the contract, or a court can award simple interest on a debt it gives judgment for.
Payment terms. Construction only: the client has 20 working days to pay or dispute a written payment claim, and the contractor can suspend work if they do neither.

Sources: Ministry of Justice: civil debt interest; business.govt.nz: how to prepare an invoice.

Japan

Freelance Act (特定受託事業者に係る取引の適正化等に関する法律, from 1 November 2024); the former Subcontract Act, renamed 取適法 from 1 January 2026; Civil Code arts. 404 and 419

Who it covers. The Freelance Act protects freelancers with no employees working for a client that has staff. The 取適法 covers outsourcing between larger and smaller businesses, by capital or headcount.
Interest. Under the 取適法, 14.6% a year from the 60th day after the client received the work. The Freelance Act sets no interest of its own. Otherwise the Civil Code's statutory rate applies, or the contract rate if higher; it is reviewed every three years. The rate in force: Ministry of Justice: statutory interest rate.
Payment terms. Payment within 60 days of receiving the work, under both Acts. With no date set, payment is due on the day the work is received. For re-commissioned work, 30 days after the client's own payment date.
The Freelance Act also requires the client to set out the terms, including the payment date, in writing.

Sources: Freelance Act (e-Gov); 取適法 (e-Gov); JFTC rule setting the 14.6% rate (e-Gov); Civil Code (e-Gov).

Singapore

Building and Construction Industry Security of Payment Act 2004

Who it covers. Construction and construction supply contracts only. We found no Singapore law giving interest on an ordinary late invoice.
Interest. Construction only: the contract rate or the rate for judgment debts, whichever is higher (s 8(5)).
Payment terms. Construction: the contract date or 35 days after the tax invoice, whichever is earlier; 14 days if the contract sets no date. Supply contracts: 60 days, or 30 with no date.

Sources: Security of Payment Act 2004, s 8 (SSO).

What this page is not

It is not legal advice. It summarises what each law says, from the official text, so you know what to look up. Before you claim, check the source, and for a large debt ask a lawyer.
It does not print today's rates. They change with the central bank's, usually twice a year. Each country links to the page that publishes the current one.
It covers the countries above. Every EU country follows the directive, so one not listed will have a rule close to the EU entry, but check its own law. Every source was read on 5 October 2026.

The guide to late payment interest explains how the interest is worked out, and chasing a late invoice sets out what to send before it comes to that. To keep it from coming to that, the payment terms generator writes terms that state your late payment rights up front.

Last updated 5 October 2026

Late payment laws by country