Vietnam Social Security's Recommendation on Handling Enterprises Delaying Insurance Payments for More Than 03 Months
How does Vietnam Social Security guide the reduction of late payment amounts for Social Insurance, Health Insurance, and Unemployment Insurance at the end of 2022?
Recently, Vietnam Social Security issued Official Dispatch 3511/BHXH-TST in 2022 demanding decisive measures to collect and reduce the amount of late payments for Social Insurance, Health Insurance, and Unemployment Insurance.
Section 1, Section 2, Section 3, Section 4 of Official Dispatch 3511/BHXH-TST in 2022 require Directors of Social Security in provinces and centrally-run cities to implement the following:
- Regularly report to the Provincial Party Committee and the Provincial People's Committee on the status of late payments for Social Insurance, Health Insurance, and Unemployment Insurance by businesses in the area to lead, direct, and demand businesses strictly comply with the full and prompt payment of Social Insurance, Health Insurance, and Unemployment Insurance as prescribed by law, to ensure the rights of workers.
- Strictly implement the Notification of Contribution Results for Social Insurance, Health Insurance, Unemployment Insurance, Occupational Accident Insurance, and Occupational Disease Insurance (Form C12-TS issued under Decision No. 595/QD-BHXH dated April 14, 2017, by Vietnam Social Security) to the employing unit to prompt the full and timely payment of contributions.
- Assign leaders and officials to regularly grasp information on the operational, production, and business situation of businesses to urge them to promptly pay Social Insurance, Health Insurance, and Unemployment Insurance, without allowing late payments to arise.
- Strengthen the activities of the inter-disciplinary debt collection team at the provincial and district levels, organizing meetings with businesses that are late in paying Social Insurance, Health Insurance, and Unemployment Insurance to urge and require businesses to fully pay late payments and prevent new late payments.
How does Vietnam Social Security propose to handle businesses that are late paying insurance for more than 03 months?
How does Vietnam Social Security require agencies to coordinate in reducing the amount of late insurance payments?
According to the guidance of Vietnam Social Security in Section 6, Section 7, Section 9 of Official Dispatch 3511/BHXH-TST in 2022 on this matter as follows:
- Provincial Social Security to closely and promptly coordinate with the police authorities to gather records and documents proving fraudulent factors in delaying Social Insurance, Health Insurance, and Unemployment Insurance payments to complete the file for transferring to investigating authorities to handle businesses that intentionally evade, delay Social Insurance, Health Insurance, and Unemployment Insurance contributions for employees according to the law.
- Provincial Social Security should cooperate with the Department of Labor, Invalids and Social Affairs and relevant functional sectors to propose to the Provincial People's Committee solutions to prevent, halt, and recover late payments of Social Insurance, Health Insurance, and Unemployment Insurance from businesses to ensure workers' rights.
- Recommend that the Fatherland Front, union organizations, and associations intensify supervision of the implementation of Social Insurance, Health Insurance, and Unemployment Insurance for employees by employing units in the area.
Additionally, Vietnam Social Security calls for enhanced propaganda and dialogue through flexible and appropriate forms to raise awareness and compliance with the law on Social Insurance, Health Insurance, and Unemployment Insurance among employers and employees. Furthermore, it announces publicly on mass media the businesses evading or delaying significant amounts and for prolonged periods of Social Insurance, Health Insurance, and Unemployment Insurance payments.
How does Vietnam Social Security propose to handle businesses that are late paying insurance for more than 03 months?
Section 5 of Official Dispatch 3511/BHXH-TST in 2022 guides handling cases of insurance payment delays of 03 months or more as follows:
- Strengthen specialized inspections of businesses that are late in paying for 03 months or more, resolutely sanction administrative violations for such acts;
- For units that have been administratively sanctioned but have not yet complied or intentionally delayed compliance, issue decisions to enforce administrative penalty decisions according to the authority prescribed in Clause 44, Article 1 of the Law on Amendments and Supplements to certain provisions of the Law on Handling Administrative Violations.
- Enhance the quality of inspection teams, with provincial Social Security leaders and the heads of inspection teams responsible to the Director General for the results of inspections and handling violations concerning inspected businesses as per regulations.
How to handle late payments of compulsory social insurance, unemployment insurance?
Specifically, according to the provisions in Clause 5, Article 39 of Decree 12/2022/ND-CP on administrative sanctions for late insurance payments as follows:
Violations of regulations on compulsory social insurance and unemployment insurance contributions
...
5. Fines ranging from 12% to 15% of the total compulsory social insurance and unemployment insurance contributions at the time of making the administrative violation record, but not exceeding VND 75,000,000, shall be imposed on employers committing one of the following acts:
a) Late payment of compulsory social insurance and unemployment insurance;
b) Underpayment of compulsory social insurance and unemployment insurance contributions not equating to avoidance;
c) Undercontributing to compulsory social insurance and unemployment insurance not equating to avoidance;
d) Appropriating employees' contributions to compulsory social insurance and unemployment insurance.
Therefore, businesses that are late in paying insurance shall be fined from 12% to 15% of the total amount due at the time the administrative violation record is made.
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