How is the Social Insurance Contribution Determined for Work Suspension Due to Covid-19?
According to Clause 3, Article 99 of the 2019 Labor Code, the regulation regarding cases of work suspension and the corresponding remuneration for employees is as follows:
If the work suspension is caused by an incident in electricity or water supply not attributable to the employer’s fault or due to natural disasters, fires, dangerous epidemics, enemy destruction, relocation of business operations as requested by the competent state agency, or due to economic reasons, the two parties shall agree on the work suspension salary as follows:
- In case of work suspension for up to 14 working days, the agreed suspension salary shall not be lower than the minimum wage.- In the event of a work suspension exceeding 14 working days, the suspension salary agreed upon must ensure that the salary for the first 14 days of suspension is not lower than the minimum wage.
Additionally, Decree 90/2019/ND-CP stipulates regional minimum wage levels as follows:
- VND 4,420,000/month: Enterprises in Region I.- VND 3,920,000/month: Enterprises in Region II.- VND 3,430,000/month: Enterprises in Region III.- VND 3,070,000/month: Enterprises in Region IV.
Therefore, if a business temporarily suspends operations due to the Covid-19 pandemic, employees shall be paid according to the agreement but must comply with the above regulations.
Moreover, Clause 8 of Article 42 of Decision 595/QD-BHXH of 2017 stipulates the following:
Employees who have their work suspended according to labor laws and still receive their salary shall have their Social Insurance (SI), Health Insurance (HI), Unemployment Insurance (UI), Occupational Accident and Disease Insurance (OADI), and Insurance against Occupational Accidents and Diseases (BNN) contributions made by both the employees and the entities based on the salary received during the suspension period.
Thus, if the company allows employees to take leave with suspended pay, the company still has to pay for SI, HI, UI, OADI, and BNN. The contribution to SI will be calculated based on the salary received during the suspension period.
Please comply with the above regulations for proper implementation.
Respectfully!
