Are the employers responsible for paying health insurance contributions for employees in Vietnam?
Is the employer responsible for paying health insurance contributions for employees in Vietnam? What are the penalties for late payment of health insurance contributions for workers in Vietnam? My name is Phu, may I ask if the employer has to pay health insurance for the employee? In case of non-payment of health insurance for employees, how much will be fined?
Are the employers responsible for paying health insurance contributions for employees in Vietnam?
Pursuant to Clause 2, Article 6 of the Labor Code 2019, the obligations of the employer are as follows:
2. An employer has the obligations to:
a) implement the employment contracts, collective bargaining agreement and other lawful agreements with employees; respect the honor and dignity of employees;
b) establish a mechanism for and hold dialogue with the employees and the representative organization of employees; implement the regulations on grassroots-level democracy;
c) Provide basic training and advanced training in order to help employees improve their professional skills or change their occupations;
d) implement regulations of laws on labor, employments, vocational education, social insurance, health insurance, unemployment insurance, occupational safety and health; develop and implement solutions against sexual harassment in the workplace;
dd) Participate in development of the national occupational standards, assessment and recognition of employees’ professional skills.
According to this Article, employers are responsible for paying health insurance contributions for employees, so you must pay health insurance contributions for employees in Vietnam.
What are the penalties for late payment of health insurance contributions for workers in Vietnam?
Pursuant to Clause 2, Clause 5, Article 80 of Decree 117/2020/ND-CP regulating violations of regulations on health insurance contribution as follows:
2. The following fines shall be imposed upon an employer for failing to pay, insufficiently or lately paying health insurance contributions for his/her employees who are subjected to compulsory health insurance, or evading payment of health insurance contributions:
a) A fine ranging from VND 1.000.000 to VND 3.000.000 shall be imposed for the violation involving less than 10 employees;
b) A fine ranging from VND 3.000.000 to VND 5.000.000 shall be imposed for the violation involving from 10 to less than 50 employees;
c) A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed for the violation involving from 50 to less than 100 employees;
d) A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for the violation involving from 100 to less than 500 employees;
dd) A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for the violation involving from 500 to less than 1.000 employees;
e) A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed for the violation involving from 1.000 employees or more.
In addition, Clause 5 of this Article also provides for remedial measures as follows:
5. Remedial measures:
a) The violating entity is compelled to make compensations for any damage incurred by health insurance policyholders in case of commission of the violation in Clause 2, 3 or 4 of this Article. Any payments which cannot be made to payers shall be paid to state budget in accordance with regulations of law;
b) Any benefits illegally obtained from the violation in Clause 2, 3 or 4 of this Article shall be paid to account of the health insurance fund.
In case of not paying health insurance contributions, the penalty will be from VND 1,000,000 to VND 40,000,000 in Vietnam.
Best Regards!
