What is the prevailing late payment interest rate for rental contracts?
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For any licence from or tenancy with the Collector of Land Revenue, Singapore Land Authority, which has a provision stipulating that interest payable on any overdue payments of fees, rents and other charges shall be based on the prevailing late payment interest rate as determined by the Government of the Republic of Singapore from time to time to be applicable and chargeable on any such overdue payments, please refer to the table set out below:
Period | Prevailing Late Payment Interest Rate |
With effect from 1 Apr 2016 to 31 May 2020 | 8.5% per annum, subject to a minimum of $3. |
With effect from 1 Jun 2020 to 31 Mar 2023 | 5.5% per annum, subject to a minimum of $3. |
With effect from 1 Apr 2023 to 30 Sep 2023 | 7.7% per annum, subject to a minimum of $3. |
With effect from 1 Oct 2023 to 30 Sep 2024 | 8.1% per annum, subject to a minimum of $3. |
With effect from 1 Oct 2024 to 31 Mar 2025 | 8.0% per annum, subject to a minimum of $3. |
With effect from 1 Apr 2025 to 30 Sep 2025 | 7.2% per annum, subject to a minimum of $3. |
With effect from 1 Oct 2025 to 31 Mar 2026 | 6.0% per annum, subject to a minimum of $3. |
Illustration
With effect from 1 Oct 2025 to 31 Mar 2026, the Late Payment Interest (LPI) Rate is 6.0% per annum. For cases involving back charging of rental for past period, the effective LPI rate for the period of the rental that is due for is to be applied. For illustration, LPI computation for Sep 2025 and Oct 2025 rental in arrears paid on 1 Nov 2025 are as follow:
Rental Period | Rental Amount Due | Balance in Arrears | Start Date | End Date | LPI Rate to Apply | Computation of LPI Period from 1 Sep 2025 to 31 Oct 2025 |
Sep 2025 | $4,000 | $4,000 | 1-Sep-2025 | 30-Sep-2025 | 7.2% | LPI |
Oct 2025 | $4,000 | $8,000 | 1-Oct-2025 | 31-Oct-2025 | 6.0% | LPI |
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