Penalties for Enterprises Delaying the Payment of Social Insurance, Unemployment Insurance, Health Insurance, and Trade Union Fees

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1. Delay in Payment of Social Insurance, Unemployment Insurance, Health Insurance

According to the provisions of Clause 1 Article 7, Article 16, and Clause 1 Article 19 of Decision 595/QD-BHXH, monthly, no later than the last day of the month, enterprises must deduct mandatory Social Insurance, Health Insurance, Unemployment Insurance on the monthly salary fund of employees participating in mandatory Social Insurance, Health Insurance, Unemployment Insurance; simultaneously deduct from the monthly salary to pay mandatory Social Insurance, Health Insurance, Unemployment Insurance for each employee according to the prescribed rate, and transfer at once to the dedicated account of the social insurance agency opened at a bank or the State Treasury.

If an enterprise violates the regulations on the deadline for deducting Social Insurance, Unemployment Insurance, Health Insurance contributions, according to Decree 28/2020/ND-CP, the specific penalties are as follows:

- Late Payment of Social Insurance, Unemployment Insurance: A fine of 12% to 15% of the total amount that must be contributed to mandatory social insurance, unemployment insurance at the time of recording the administrative violation but the maximum fine does not exceed VND 75,000,000 for individual violations and VND 150,000,000 for organizational violations.

In addition, enterprises must take remedial measures such as: Compulsorily paying the unpaid, late payment amount of mandatory social insurance, unemployment insurance along with an interest rate of twice the average social insurance fund investment rate of the preceding year on the amount and time of the late payment; if not performed, upon the request of the competent authority, the bank, other credit institutions, and the State Treasury are responsible for deducting the unpaid, late payment amount and interest from the employer’s deposit account into the social insurance agency’s account for delays of 30 days or more.

- Late Payment of Health Insurance: According to Clause 4 Article 57 of Decree 176/2013/ND-CP, a fine from VND 300,000 to VND 35,000,000 depending on the violation value, and measures for remediation are to compulsorily pay the due amount and the arising interest of the unpaid, late payment amount into the health insurance fund account.

Additionally, according to the provisions of Clause 3 Article 122 of the Social Insurance Law 2014, and Article 49 of the Health Insurance Law 2008, amended and supplemented in 2014, enterprises that evade, delay, or misuse payments for Social Insurance, Health Insurance, Unemployment Insurance for 30 days or more, in addition to fully paying the unpaid, late contributions and being penalized according to the law, must also:

- Pay an interest of twice the average investment rate of the social insurance fund of the preceding year on the amount and time of late social insurance, unemployment insurance contributions;- Pay an interest of twice the interbank rate on the amount and time of late health insurance contributions;- If not performed, upon the request of the competent authority, the bank, other credit institutions, and the State Treasury are responsible for deducting the unpaid, late payment amount and interest from the employer’s deposit account into the social insurance agency’s account, health insurance fund;- Fully reimburse the employee for all costs within the coverage and benefits of health insurance that the employee paid during the period without a health insurance card.

2. Delay in Payment of Trade Union Fees

According to Clause 2 Article 6 of Decree 191/2013/ND-CP, businesses must pay trade union fees monthly at the same time as the mandatory social insurance contributions for employees, with a rate of 2% of the salary fund used as the basis for social insurance contributions.

If an enterprise violates the regulations on trade union fee payment such as delayed payment, incorrect amount, insufficient payment for eligible workers, they will be fined from 12% to under 15% of the total trade union fees due at the time of recording the administrative violation, with a maximum fine of VND 75,000,000.

Especially, if an enterprise fails to pay trade union fees for all eligible employees, the fine will range from 18% to 20% of the total trade union fees due at the time of recording the administrative violation, but not exceeding VND 75,000,000.

Furthermore, within 30 days from the date of the penalty decision, the employer must pay the overdue, insufficient, or unpaid trade union fees along with the interest on such amounts based on the highest non-term deposit interest rate of state-owned commercial banks announced at the time of penalty for the aforementioned violations.

Specifically, Article 37 of Decree 28/2020/ND-CP stipulates the penalty for violating trade union fee payment as follows:

Article 37. Violations on Trade Union Fee Payment

1. A fine from 12% to under 15% of the total amount due at the time of recording the administrative violation, but not exceeding VND 75,000,000 for the following violations by the employer:

a) Late payment of trade union fees;

b) Incorrect payment of trade union fees;

c) Insufficient payment for eligible employees.

2. A fine from 18% to 20% of the total amount due at the time of recording the administrative violation but not exceeding VND 75,000,000 for the employer’s failure to pay trade union fees for all eligible employees.

3. Remedial measures

Within 30 days from the date of the penalty decision, the employer must pay the overdue, insufficient, or unpaid trade union fees along with the interest on such amounts based on the highest non-term deposit interest rate of state-owned commercial banks announced at the time of penalty for violations under Clauses 1 and 2 of this Article.

Nguyen Trinh

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