Payment Terms Legislation In South Africa

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South Africa

Please scroll down for a summary of payment terms in South Africa and the various industries across which payment term legislation appears.

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Industries Laws Codes Notes Interest Rate
Government
Comm_terms_law
Construction
Manufacturing
Retail_agriculture
Services

Laws

Treasury Regulation 8.2.3 requires the government to pay suppliers within 30 days.

Government
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Codes

Run by the National Small Business Chamber of South Africa the Prompt Payment Code champions the importance of big business and government paying small suppliers within 30 days.

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Notes

The Construction Industry Development Board Act limits ‘pay when paid’ clauses and provides for adjudication and resolution time limits but does not specify a maximum term.

Construction
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Interest Rate

Default interest for late payments is the Prescribed Rate of Interest which is set periodically by the Minister of Finance. As at 1 July 2023 the rate was 11.75%. The National Credit Act also sets out a number of criteria for maximum interest under incidental credit agreements which apply to late payment of invoices.

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