What are the instructions on the message format for bank transfer of premiums for social insurance in Vietnam to provide benefits for participants faster?
- What are the instructions on the message format for bank transfer of premiums for social insurance in Vietnam to provide benefits for participants faster?
- What are the levels and methods of payment by employees covered by compulsory social insurance in Vietnam?
- Vietnam: How much is the fine for making late payment of compulsory social insurance for employees?
What are the instructions on the message format for bank transfer of premiums for social insurance in Vietnam to provide benefits for participants faster?
According to Official Dispatch 1995/BHXH-TCKT in 2023 to specify contents of the transfer according to the message format provided for by social insurance authorities:
The uniform message will help social insurance authorities compare, check and recognize information on payment quickly and accurately to provide benefits for participants faster in accordance with regulations and policies. To be specific:
- In case of transfer by mobile banking applications: Enter payment information in the application.
- In case of transfer by payment orders:
+ Message format: +BHXH+103+00+ code of unit + code of social insurance agency + dong BHXH+
+ For example: Company ABC transfers their premiums for social insurance, health insurance and unemployment insurance, specify +BHXH+103+00+TZ0255Z+00101+dong BHXH
Where: +BHXH+103+00+ is the default option; TZ0255Z is the code of Company ABC; 00101 is the code of the supervisory social insurance agency of Company ABC.
- Vietnam social Security, Provincial social insurance authorities and district-level social insurance authorities shall post information specified in Clause 1 on their official websites for units to use it when transferring social insurance, health insurance and unemployment insurance premiums; bank must not alter policyholder's information when executing payment orders.
What are the instructions on the message format for bank transfer of premiums for social insurance in Vietnam to provide benefits for participants faster?
What are the levels and methods of payment by employees covered by compulsory social insurance in Vietnam?
According to the provisions of Article 85 of the Law on Social Insurance 2014, the levels and methods of payment by employees covered by compulsory social insurance are as follows:
- Employees defined at Points a, b, c, d, dd and h, Clause 1, Article 2 of Law on Social Insurance 2014 shall monthly pay 8% of their monthly salary to the retirement and survivorship allowance fund.
Employees defined at Point i, Clause 1, Article 2 of Law on Social Insurance 2014 shall monthly pay an amount equal to 8% of the statutory pay rate to the retirement and survivorship allowance fund.
- For employees defined at Point g, Clause 1, Article 2 of Law on Social Insurance 2014, the levels and methods of payment are specified as follows:
+ The monthly level of payment to the retirement and survivorship allowance fund must equal 22% of employees’ monthly salary on which social insurance premiums are based before they go abroad to work, for employees who have paid compulsory social insurance premiums in a certain period; 22% of 2 times the statutory pay rate, for employees who are not yet covered by compulsory social insurance or who have paid compulsory social insurance premiums and have already received a lump-sum social insurance allowance.
+ Payment shall be made once every 3 months, every 6 months or every 12 months or in a lump sum within the time limit stated in the contracts on sending of employees to work abroad. Employees may make payment directly to social insurance agencies of localities where they reside before going abroad or via enterprises or non-business organizations that have sent them to work abroad.
In case the payment is made via enterprises or non-business organizations that have sent employees to work abroad, these enterprises or organizations shall collect and pay social insurance premiums for employees and register the method of payment with social insurance agencies.
Employees who have their contracts extended or sign new contracts in the host countries shall pay social insurance premiums according to the method specified in this Article or shall retrospectively pay social insurance premiums to social insurance agencies after they repatriate.
- Employees who neither work nor receive salary for 14 working days or more in a month are not required to pay social insurance premiums in that month. This period shall not be counted for enjoyment of social insurance benefits, except cases of maternity leave.
- An employee defined at Point a or b, Clause 1, Article 2 of Law on Social Insurance 2014 who signs labor contracts with many employers shall only pay social insurance premiums under Clause 1 of this Article for the first-signed labor contract.
- Employees who enjoy product-based or piecework-based salaries at enterprises, cooperatives, individual business households or cooperative groups engaged in the fields of agriculture, forestry, fishery or salt making shall pay monthly social insurance premiums at the levels specified in Clause 1 of Article 85 of Law on Social Insurance 2014; payment may be made every month, every 3 months or every 6 months.
- The determination of the period of social insurance premium payment for enjoyment of pension and monthly survivorship allowance must adhere to the principle that one year has full 12 months; an employee who satisfies the age requirement for pension enjoyment but whose period of social insurance premium payment is short of 6 months at most may pay a lump-sum amount for these months with the monthly premium equal to the total premiums paid by him/her and his/her employer to the retirement and survivorship allowance fund, based on the monthly salary on which social insurance premiums were based before he/she ceases working.
- The calculation of periods of social insurance premium payment with odd months for enjoyment of the retirement and survivorship allowance benefits must be as follows:
+ A period of between 1 month to 6 months shall be counted as half year;
+ A period of between 7 months to 12 months shall be counted as one year.
Vietnam: How much is the fine for making late payment of compulsory social insurance for employees?
In Clause 5 and Clause 10, Article 39 of Decree 12/2022/ND-CP stipulates penalties for violations against regulations on payment of compulsory social insurance and unemployment insurance premiums as follows:
Violations against regulations on payment of compulsory social insurance and unemployment insurance premiums
...
5. A fine equal to 12% to under 15% of total amount of compulsory social insurance and unemployment insurance premiums payable at the date of issuance of violation record, but not exceeding VND 75.000.000 shall be imposed upon an employer for commission of one of the following violations:
a) Making late payment of compulsory social insurance and unemployment insurance premiums;
...
10. Remedial measures
a) The employer that commits any of the violations in Clauses 5, 6, 7 of this Article is compelled to pay total amount of compulsory social insurance and unemployment insurance premiums payable to social insurance authorities;
b) The employer that commits any of the violations in Clauses 5, 6, 7 of this Article for a duration of at least 30 days is compelled to pay an amount of interest charged on insurance premiums accrued due to late payment, non-payment, evasion of payment or appropriation of payments, which is calculated by using the interest rate that is 02 times higher than the average interest rate of investment made by the social insurance fund in the previous year. If not doing so, at the request of competent persons, banks, other credit institutions or state treasuries shall withdraw money from the violating employer’s deposit accounts to transfer deferred amounts or outstanding amounts of insurance premiums plus the interest on such amounts, which is calculated at the highest rate of the demand deposit interest rates publicly quoted by state-owned commercial banks on the date of penalty imposition, to the account of the relevant social insurance authority.
Thus, according to the above regulations, a fine equal to 12% to under 15% of total amount of compulsory social insurance and unemployment insurance premiums payable at the date of issuance of violation record, but not exceeding VND 75.000.000 shall be imposed upon an employer for commission of making late payment of compulsory social insurance and unemployment insurance premiums.
* Note: The above penalty level for individuals, the penalty level for organizations is the same as the penalty level for individuals.
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