Pursuant to Clause 3, Article 43, Procedures for collection of social insurance contributions and premiums of health insurance, unemployment insurance, occupational accident and occupational disease insurance and issuance of social insurance books and health insurance cards issued with Decision 595/QD-BHXH of 2017 amended by Clause 67, Article 1 of Decision 505/QD-BHXH of 2020 regulating management of collected insurance contributions and premiums is as follows:
Management of collected insurance contributions and premiums
3. Refund of insurance contributions and premiums
3.1. Insurance contributions and premiums shall be refunded if:
a) An employer that dissolves, goes bankrupt or shuts down its operation in accordance with regulations of law or move its registered place pays more than prescribed insurance contributions or premiums.
b) One of the cases of refund of social insurance contributions and health insurance premiums incurs.
c) An employer that transfers insurance contributions or premiums to a collecting account is not under the management of the social insurance authority of the province or the district.
d) Amount of money transferred to the collecting account by an employer or individual is not used for paying insurance contributions or premiums.
dd) A treasury or bank records a wrong amount into the collecting account.
e) If any participant has at least 2 social insurance booklets with the same payment period of social insurance and unemployment insurance, the social security agency shall refund contributions which has been paid to the retirement pension and survivor benefit fund and unemployment insurance benefit fund by himself/herself and unit (including social insurance contributions that are paid on his/her employing unit’s part), excluding interest. The in-charge social security agency of the place where an employee is working or living shall discharge its refund obligations as prescribed in clause 2 of Article 46.
g) An employer pays social insurance contributions for employees who are not required to participate in compulsory social insurance.
3.2. Assignment of implementation
Social insurance authorities shall refund insurance contributions and premiums from their collecting accounts to employers and participants under their management.
3.3. Procedures for refunding insurance contributions and premiums
a) Application for refund of insurance contributions and premiums
- Regarding the cases prescribed in Point 2.1.1 of this Clause, the employer shall make an application in accordance with Article 23.
- Regarding the case prescribed in Points 2.1.b and 2.1.e of this Clause, the individual shall make an application in accordance in Article 26. If the health insurance premium is refunded to multiple participants in the same entities, People's Committee of the commune, authorized collector or school shall make a list of participants whose premiums are refunded using the specimen D03-TS and send it to the social insurance authority.
- Regarding other cases, the employer, bank or treasury shall submit an application.
b) A collecting division shall cooperate with the planning and financial division in uncovering reasons and determining redundant insurance premiums, premiums transferred or accounted wrongly to collecting accounts and submit them to the Director of the social insurance authority.
c) The director shall issue a decision on refunding insurance contributions and premiums using the specimen C16-TS and send a copy to the planning and financial division, go through procedures for transferring money and send a copy to the collecting division. If a bank or state treasury wrongly does accounting, the director of social insurance authority shall send a copy of the decision to the bank or state treasury for control.
According to this Article, a refund of compulsory social insurance contributions in Vietnam is required in one of the following cases:
- The unit dissolves, goes bankrupt, terminates operations according to the provisions of law or moves the place of registration to participate and has overpaid social insurance, health insurance, unemployment insurance, accident insurance work, occupational diseases.
- The unit transferring money to the collection account is not under the collection management responsibility of the provincial or district social insurance agency according to decentralization.
- The amount of money transferred to the collection account by units and individuals is not social insurance, health insurance, unemployment insurance, labor accident and occupational disease insurance.
- The treasury or bank mistakenly accounts for the collection account.
- In case a person has 02 or more social insurance books and the time of paying social insurance and unemployment insurance overlaps, the social insurance agency will refund the employee the unit amount and the employee has paid into the retirement and survivorship fund and the amount paid into the unemployment insurance fund, excluding interest
The social insurance agency managing the place where the employee is working or living shall reimburse the employee according to Clause 2, Article 46 of Decision 595/QD-BHXH 2017.
- In case of paying social insurance for employees who are not subject to compulsory social insurance participation.
In what cases can I receive a refund of compulsory social insurance contributions in Vietnam? (Image from the Internet)
According to Clause 1, Clause 2, Article 89 of the Law on Social Insurance 2014, regulations on monthly salary on which compulsory social insurance premiums are based are as follows:
Monthly salary on which compulsory social insurance premiums are based
1. For employees subject to the State-prescribed salary benefits, their monthly salary on which social insurance premiums are based is their rank- or grade-based salary plus position-based, extra-rank working seniority-based or occupation-based seniority allowance (if any).
For employees defined at Point i, Clause 1, Article 2 of this Law, their monthly salary on which social insurance premiums are based is the statutory pay rate.
2. For employees who pay social insurance premiums according to the employer-decided salary benefits, their monthly salary on which social insurance premiums are based is their salary plus salary-based allowance as prescribed in the labor law.
Since January 1, 2018, the monthly salary on which social insurance premiums are based will be the salary plus salary-based allowance and other amounts as prescribed in the labor law.
3. In case the monthly salary specified in Clause 1 or 2 of this Article exceeds 20 times the statutory pay rate, the monthly salary on which social insurance premiums are based must equal 20 times the statutory pay rate.
4. The Government shall stipulate in detail the retrospective collection and payment of monthly salaries on which compulsory social insurance premium are based for employees and employers, except the case specified in Clause 3, Article 122 of this Law.
According to this Article, the monthly salary for compulsory social insurance payment in Vietnam is the following:
- For employees subject to the salary regime prescribed by the State, the salary for compulsory social insurance payment is: salary according to rank, grade, rank, military rank and position allowances, Excess seniority allowance, career seniority allowance (if any).
- For people working part-time in communes, wards or towns, the salary for compulsory social insurance payment is the base salary.
- For employees subject to the salary regime decided by the employer, the salary for compulsory social insurance payment is the salary, allowances and additional payments.
Pursuant to Article 88 of the Law on Social Insurance 2014, regulations on suspension from payment of compulsory social insurance premiums are as follows:
Suspension from payment of compulsory social insurance premiums
1. Suspension from payment to the retirement and survivorship allowance fund is specified as follows:
a/ In case employers meet with difficulties and have to suspend their production or business activities, making them and their employees unable to pay social insurance premiums, the payment to the retirement and survivorship allowance fund may be suspended for 12 months at most;
b/ Upon the expiration of the time limit for payment suspension specified at Point a of this Clause, employers and employees shall continue paying social insurance premiums and make supplementary payment for the suspension period. The supplementary amount paid for the suspension period is not subject to late- payment interest under Clause 3, Article 122 of this Law.
2. For employees covered by compulsory social insurance premiums who are put in temporary detention, they and their employers may suspend payment of social insurance premiums. In case competent agencies conclude that employees suffer a miscarriage of justice, supplementary payment shall be made for the detention period. The supplementary amount paid for the suspension period is not subject to late-payment interest under Clause 3, Article 122 of this Law.
3. The Government shall detail this Article and specify other cases of suspension from payment of compulsory social insurance premiums.
Thus, employees and employers can suspend paying compulsory social insurance when employees are detained according to the provisions of law in Vietnam.
In case the competent authority determines that the employee has been unjustly or wrongly committed, social insurance compensation for the period of detention will be made. The compensation amount is not subject to late payment interest in Vietnam.