Cases of collection of arrears of compulsory social insurance, health insurance, unemployment insurance, labor accident insurance, and occupational disease in Vietnam

Cases of collection of arrears of compulsory social insurance, health insurance, unemployment insurance, labor accident insurance, and occupational disease in Vietnam (Internet image) 

1. What is arrears?

According to Point 2.4, Clause 2, Article 2 of Decision 595/QD-BHXH dated April 14, 2017, collect arrears means social insurance authorities collect insurance contributions and premiums in case of evasion of payment, inadequate quantity of participants in insurance, inadequate insurance premiums or contributions, appropriation of contributions or premiums or payout of social insurance, health insurance, unemployment insurance or occupational accident and occupational disease insurance.

2. The time limit for collection of arrears of social insurance, health insurance, unemployment insurance, occupational accident and occupational disease in Vietnam 

The time limit for collection of arrears of social insurance, health insurance, unemployment insurance, occupational accident and occupational disease insurance according to Clause 2, Article 28 of Decision 595/QD-BHXH dated April 14, 2017 is stipulated as follows:

- Regarding violations of regulations of law on payment of insurance contributions or premiums, the application shall be processed within 10 days from the day on which the adequate application is received in accordance with regulations of law.

- Regarding increase in salary as the basis for payment of insurance contributions or premiums, the application shall be processed within 03 days from the day on which the adequate application is received in accordance with regulations of law.

3. Cases of collection of arrears of compulsory social insurance, health insurance, unemployment insurance, labor accident insurance, and occupational disease in Vietnam

Cases of arrears of compulsory social insurance, health insurance, unemployment insurance, occupational accident and occupational disease insurance according to Clause 1, Article 38 of Decision 595/QD-BHXH dated April 14, 2017 are as follows:

- Collection of arrears due to evasion of payment: If an employer evades payment of insurance contributions or premiums, fails to pay insurance contributions or premiums for sufficient participants, fails to pay sufficient insurance contributions or premiums or appropriates insurance contributions or premiums and its violations are discovered through results of specialized inspection in term of payment of insurance contributions and premiums or concluded by the competent authority from January 01, 2016:

Apart from insurance contributions and premiums payable, the interest on insurance contributions and premiums payable and period of evasion and late payment interest shall also be collected as follows:

+ Regarding the entire period of evasion before January 01, 2016, the rate of late payment interest in 2016 shall be applied;

+ Regarding the period of evasion from January 01, 2016 onward, the annual rate of late payment interest at the time when the evasion of payment of insurance contributions and premiums is discovered shall be applied;

- Collection of arrears in the cases where Vietnamese guest workers terminate their labor contract and come back home to pay unpaid insurance premiums for the abroad working period: If a Vietnamese guest worker coming back home pays unpaid social insurance contributions after at least 6 months from the day on which his/her labor contract is terminated, the arrears on social insurance contributions will include social insurance contributions payable as prescribed by law and interest thereon.

- Collection of arrears due to increase in the monthly salary as the basis for payment of social insurance, unemployment insurance, occupational accident and occupational disease insurance:

If an employee pays social insurance contributions or premiums of unemployment insurance or occupational accident and occupational disease insurance after 6 months from the day on which the competent person signs the decision on or labor contract (appendix of labor contract) for increasing the pay scale or increasing monthly salary and allowances as the basis for paying insurance premiums, the arrears shall include

+ Contributions and premiums payable as prescribed by law; and

+ The interest thereon.

- Arrears in other cases shall be collected in accordance with regulations issued by competent authority

4. Conditions for collecting arrears of compulsory social insurance, health insurance, unemployment insurance, labor accident insurance, and occupational disease

Conditions for collecting arrears of compulsory social insurance, health insurance, unemployment insurance, occupational accident and occupational disease insurance according to Clause 2, Article 38 of Decision 595/QD-BHXH dated April 14, 2017 (amended in Decision 505/QD-BHXH dated March 27, 2020 )

- Competent authorities or social insurance authorities are required to collect arrears

- Payment of insurance contributions: Participants shall pay insurance contributions to collecting agents or Social Security agencies according to the registered payment methods or via banks or smart facilities relevant to the registered payment methods.

- Applications are made in accordance with regulations of Appendix 2

If an employer requests the collection of arrears in the added period of under 6 months enclosed with the specimen D04h-TS or inspection results or in the added period of 6 months or more enclosed with the inspection results provided by the social insurance authority or inspecting authority or enclosed with the decision on penalty for administrative violations issued by the competent authority

Form D04h-TS

Quoc Dat

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