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CSDDDCurrent status

CSDDD pecuniary penalties have a 3% maximum limit

Directive (EU) 2026/470 replaced the original requirement for national maximum pecuniary-penalty limits of at least 5% with a uniform maximum limit set at 3% of the relevant worldwide turnover.

The 3% figure is a ceiling for the national penalty framework, not an automatic fine. Track the transposition law and authority practice that apply to the entity.

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Author
Sorena AI
Published
Feb 21, 2026
Updated
Oct 15, 2026
4 sections3 primary sources
Overview

The amended Directive fixes one figure at EU level: Member States must set the maximum limit for at 3% of the relevant worldwide turnover. Pecuniary penalties are monetary sanctions imposed through the applicable national enforcement procedure; the 3% figure is the required ceiling, not the amount automatically imposed. The competent authority determines any actual penalty by applying the Article 27 factors and national procedure.

Section 1

What changed

The original Article 27 required national maximum limits of at least 5% of net worldwide turnover. The 2026 amendment replaced that rule. Member States must set the maximum limit at 3% of the company's net worldwide turnover in the financial year before the fine decision or, for the ultimate-parent cases named in amended Article 27(4), 3% of net consolidated worldwide turnover at ultimate-parent level. Older summaries quoting 5% describe superseded text.

Member States must transpose the amended CSDDD by 26 July 2028 and apply the national measures from 26 July 2029. Until the relevant national law applies, use the 3% rule for implementation planning and legislative tracking, not as a claim that an authority can already impose a CSDDD fine under the Directive alone.

  • Replace 5% in current-law dashboards with the amended 3% maximum-limit rule, while preserving any separate national-law detail.
  • Do not label 5% an automatic penalty, a per-incident fine, or a minimum sanction.
  • Do not label 3% an automatic, minimum, or per-incident penalty. It is the maximum limit Member States must set, and the imposed amount remains subject to Article 27 factors and national procedure.
  • Retain the historical source only when explaining how the law changed.
Section 2

How the authority determines a penalty

Article 27 requires effective, proportionate, and dissuasive penalties. When deciding whether to impose one and setting its type and amount, the authority must consider the facts listed in the Directive. The Commission must also issue guidance to help supervisory authorities determine penalty levels, but the Directive sets no publication deadline for that guidance.

  • Nature, gravity, and duration of the infringement, plus the severity of the resulting impacts.
  • Investments and targeted support used to prevent or address impacts, and collaboration with other entities.
  • Whether prioritisation followed Article 9 and whether the company has relevant prior infringements.
  • Remedial action, financial benefits gained or losses avoided, and other aggravating or mitigating factors.
  • A public statement naming the company and infringement is a separate required consequence if the company does not pay a pecuniary penalty within the applicable time limit.
Section 3

Build the national penalty register

  • Member State and in-scope entity.
  • Transposition provision and effective date.
  • Competent supervisory authority and cooperation route.
  • Covered infringements, monetary and non-monetary consequences, Article 27 calculation factors, the 3% maximum limit, and treatment of ultimate-parent turnover.
  • Decision publication, the five-year availability period, the non-payment public statement, and protection of personal data.
  • Investigation, hearing, order, payment, appeal, and judicial-review procedure.
  • Source version, legal owner, review date, and unresolved interpretation.
Section 4

Evidence that reduces uncertainty

  • Document the scope conclusion and applicable national regime.
  • Retain the risk map, prioritisation rationale, prevention and corrective measures, stakeholder engagement, complaints, remediation, monitoring, and communication evidence.
  • Record management decisions, resources, escalation, and timely response to supervisory requests.
  • Keep corrective action separate from any position on liability, privilege, or settlement; remedial action is a penalty factor, not an automatic defence.

Replace generic fine claims with a national penalty register

Track the actual authority, sanction rule, calculation, procedure, and source for every relevant Member State.

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Open the amended CSDDD hub

Return to current scope, dates, due diligence, reporting, and enforcement guidance.

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Discuss CSDDD implementation

Review the relevant entity, national-law dependency, evidence gap, and next control decision with Sorena.

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Primary sources

References and citations

Consolidated Directive (EU) 2024/1760 as at 18 March 2026
eur-lex.europa.eu4 citations
Referenced sections
  • Current Article 27 penalty framework, including factors, penalty types, publication, and the amended turnover limit.
  • Current Article 27 factors, required penalty types, non-payment statement, decision-publication rule, and amended 3% limit.
  • EU-level penalty framework that Member States must transpose and authorities must apply through national procedure.
Show 1 more
  • Current due diligence and penalty framework, including remedial action as one factor in the penalty decision.
Directive (EU) 2026/470
eur-lex.europa.eu2 citations
Referenced sections
  • Current penalty amendment.
  • Current binding amendment setting the uniform 3% maximum limit for pecuniary penalties.

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