Are entities temporarily suspended from contributing to the retirement and death benefit fund in Vietnam required to make up for the suspended period?
Are entities temporarily suspended from contributing to the retirement and death benefit fund in Vietnam required to make up for the suspended period?
Based on the provisions of Clause 3, Article 42 of the Process of collecting social insurance, health insurance, unemployment insurance, occupational accident, and occupational disease insurance; management of social insurance books, health insurance cards Decision 595/QD-BHXH in 2017, the management of subjects is stipulated as follows:
Management of subjects
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3. Entities temporarily suspended from contributing to the retirement and death benefit fund must still contribute to the sickness and maternity fund, occupational accident and occupational disease fund, health insurance fund, and unemployment insurance fund. After the suspension period ends, the entity shall continue contributing to social insurance, health insurance, unemployment insurance, occupational accident and occupational disease insurance as per registered methods and make up for the suspended period to the retirement and death benefit fund. No late payment interest is applied to the compensatory contribution.
During the suspension period, if an employee leaves, relocates, or avails social insurance policies, the entity must fully pay social insurance, health insurance, unemployment insurance, occupational accident and occupational disease insurance, and any applicable late payment interest for that employee to confirm the social insurance book.
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Thus, entities temporarily suspended from contributing to the retirement and death benefit fund must make compensatory contributions for the suspended period after the suspension period ends.
Note: Compensatory contributions are not subject to late payment interest.
Are entities temporarily suspended from contributing to the retirement and death benefit fund in Vietnam required to make up for the suspended period?
How much is monthly contribution rate to the retirement and death benefit fund for Vietnamese officials?
Based on the provisions of Article 85 of the Social Insurance Law 2014, the contribution rate and payment method of employees participating in compulsory social insurance are stipulated as follows:
Contribution rate and payment method of employees participating in compulsory social insurance
1. Employees specified at points a, b, c, d, dd, and h of Clause 1, Article 2 of this Law, must contribute 8% of their monthly salary to the retirement and death benefit fund.
Employees specified at point i of Clause 1, Article 2 of this Law must contribute 8% of the statutory pay rate to the retirement and death benefit fund monthly.
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Based on the provisions of Clause 1, Article 2 of the Social Insurance Law 2014 regarding the applicable subjects of the social insurance law as follows:
Applicable subjects
1. Employees who are Vietnamese citizens and belong to the compulsory social insurance scheme, including:
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b) Employees working under labor contracts with a term of from full 1 month to under 3 months;
c) Officials and public employees;
d) Defense workers, police workers, and those working in other fields within cipher organizations;
dd) Officers, professional army men of the People's Army; officers, professional technical police of the People's Police; those working in cipher organizations enjoying salaries like army men;
e) Non-commissioned officers, soldiers of the People's Army; non-commissioned officers, soldiers of the People's Police serving a definite term; military, police, cipher students receiving subsistence allowances;
g) Persons working abroad under contracts as stipulated by the Vietnamese labor law for people working abroad under contracts;
h) Managers of enterprises, managers of cooperatives receiving salaries;
i) Non-specialist workers at the commune, ward, commune-level town.
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Hence, officials have the obligation to participate in compulsory social insurance and contribute 8% of their monthly salary to the retirement and death benefit fund.
What tasks are social insurance management expenses used for?
Based on the provisions of Article 90 of the Social Insurance Law 2014 stipulating the management expenses of social insurance as follows:
Management expenses of social insurance
1. Social insurance management expenses are used to carry out the following tasks:
a) Propagating and disseminating policies and laws on social insurance; training and fostering professional skills regarding social insurance;
b) Reforming social insurance procedures, modernizing the management system; developing and managing participants and beneficiaries of social insurance;
c) Organizing the collection and disbursement of social insurance and operating the machinery of social insurance agencies at all levels.
2. The source of funds to perform the tasks specified in Clause 1 of this Article is annually deducted from the profits generated from investment activities of the fund.
Every 3 years, the Government of Vietnam reports to the Standing Committee of the National Assembly to decide on the level of social insurance management expenses.
3. The Prime Minister of the Government of Vietnam details Clause 1 of this Article.
Thus, social insurance management expenses are used to perform the following tasks:
- Propagating and disseminating policies and laws on social insurance; training and fostering professional skills regarding social insurance;
- Reforming social insurance procedures, modernizing the management system; developing and managing participants and beneficiaries of social insurance;
- Organizing the collection and disbursement of social insurance and operating the machinery of social insurance agencies at all levels.
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