Covid-19 Pandemic: Guidelines for the Temporary Suspension of Contributions to the Retirement and Survivorship Fund for Enterprises

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File receipt form 600a

To address the difficulties in production and business, ensure social security in response to the Covid-19 pandemic, the City's Social Insurance temporarily guides agencies, units, organizations, enterprises (collectively referred to as enterprises) to implement the temporary suspension of contributions to the retirement and survivorship fund for those affected by the Covid-19 pandemic, as follows:

1. Applicable Subjects:

- Enterprises in the passenger transport service, tourism, textile, lodging, restaurant, and other special sectors facing difficulties due to the Covid-19 pandemic are allowed to temporarily suspend contributions to the retirement and survivorship fund.

- Enterprises are allowed to temporarily suspend contributions to the retirement and survivorship fund (22%) when meeting one of the following conditions:

+ Unable to arrange work for workers, where the number of workers participating in social insurance who must temporarily stop working accounts for 50% or more of the total number of employees present before halting production and business;

+ Sustains losses over 50% of the total asset value due to the epidemic (excluding the value of land).

2. Duration of Suspension:

Enterprises that meet the conditions are allowed to temporarily suspend contributions to the retirement and survivorship fund until the end of June 2020. By the end of June 2020, in the event that the Covid-19 pandemic has not subsided, if enterprises so request, the City's Social Insurance will continue to address the temporary suspension of contributions to the retirement and survivorship fund until December 2020.

3. Documentation and Procedures:

Step 1: Enterprises contact the Department of Labor - Invalids and Social Affairs to determine the number of workers participating in social insurance who must temporarily stop working compared to the total number of employees present before halting production and business or contact the Financial Department to determine the asset losses compared to the asset valuation in the most recent inventory report before the damage, as conformable under Clause 1, Article 88 of Social Insurance Law 2014, Clauses 1, 2, 3, and 4 Article 16 of Decree 115/2015/ND-CP and Article 28 of Circular 59/2015/TT-BLDTBXH.

Step 2: Enterprises prepare the documents and send them to the Social Insurance agency according to file receipt form 600a, accompanied by the document from the competent agency confirming the eligibility for temporary suspension of contributions to the retirement and survivorship fund for processing.

During the period of temporary suspension, enterprises are still required to contribute to the sickness and maternity fund, occupational accident and disease fund (BHTNLD-BNN), health insurance fund (BHYT), and unemployment insurance fund (BHTN) at a rate of 10% of the wage fund.

In case an employee stops working, relocates, or settles social insurance policies, enterprises are required to fully pay the social insurance, health insurance, unemployment insurance, BHTNLD-BNN contributions, and late payment interest (if any) for that employee to confirm the social insurance book.

Note: At the end of the suspension period, enterprises continue to pay social insurance, health insurance, unemployment insurance, BHTNLD-BNN according to the registered method and compensate for the suspension period by paying back contributions to the retirement and survivorship fund. The back payments will not be subject to late payment interest.

Nguyen Trinh

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