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Delaying with the Remuneration Payment

Viimati uuendatud: 14.02.2017

Delaying with the remuneration payment is a situation when the employer does not pay the remuneration to the employee by its’ due date. As the Employment Contracts Act does not regulate delaying with the remuneration payment, the fine for delay shall be based on provisions of the Law of Obligations Act (LOA).

According to LOA §94 and §113, the employee is entitled to demand a fine for delaying with the remuneration payment from the amount due.

The fine rate is the latest European Interbank Offered Rate (Euribor) plus 8% per year. The latest interest rate published in Ametlikud Teadaanded is 0.05%, starting from July 1st, 2015. Thus, the current yearly rate is 8.05%.

The parties may agree on a greater interest rate, but to be applied only when the employer delays with a monetary obligation fulfilment.


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