Guidance on Determining the Number of Employees Participating in Social Insurance Reduced Due to Covid-19

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 File for Temporary Suspension of Pension and Death Benefit Fund Contributions for Enterprises Affected by Covid-19

The Ministry of Labor, Invalids and Social Affairs (MOLISA) provides detailed guidance on 02 cases and conditions for temporarily suspending contributions to the pension and death benefit fund. Specifically, the employer can temporarily suspend contributions to the pension and death benefit fund in the following cases:

Case 1: Temporarily suspending production and business for 01 month or more due to difficulties arising from changes in structure, technology, economic crisis or recession, implementing State policies when restructuring the economy, or fulfilling international commitments.

Case 2: Encountering difficulties due to natural disasters, fires, epidemics, crop failures.

Moreover, the employer must meet one of the following conditions:

- Unable to arrange work for employees, where the number of employees participating in Social Insurance (SI) who have to temporarily stop working is 50% or more of the total number of employees present before the suspension of production and business activities;- Suffering damage of over 50% of the total asset value due to natural disasters, fires, epidemics, crop failures;- Having fully paid SI until the end of January 2020 and affected by Covid-19, resulting in a reduction of 50% or more of employees participating in SI at the time of the proposal compared to January 2020.

For the case of being affected by Covid-19, MOLISA provides detailed guidance on determining the reduced number of employees participating in SI, including:

- The number of employees who terminate labor contracts, employment contracts as per the law minus the number of newly signed labor contracts, employment contracts from February 01, 2020, until the date of the proposal;- The number of employees temporarily suspending the performance of labor contracts where the suspension period is 14 working days or more in the month;- The number of employees stopping work where the work stoppage period is 14 working days or more in the month;- The number of employees taking unpaid leave where the unpaid leave period is 14 working days or more in the month.

Note: The reduced number of employees only includes those working under employment contracts, indefinite-term labor contracts, definite-term labor contracts, labor contracts with a term of 01 month to less than 12 months, business managers, and managers and operators of cooperatives receiving salaries.

Lan Anh

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