Vietnam Social Security has just issued Official Dispatch 860/BHXH-BT regarding the temporary suspension of contributions to the retirement and survivorship fund for individuals affected by the Covid-19 pandemic. This Official Dispatch outlines the procedures for enterprises to temporarily suspend contributions to the retirement and survivorship fund as follows:
Article table of contents
Illustrative photo
1. Temporary suspension period:
Until the end of June 2020 or December 2020.
In case by the end of June 2020, the Covid-19 epidemic has not subsided, if businesses request, promptly cooperate with the Department of Labor, Invalids, and Social Affairs, the Department of Finance to report to the provincial/city People’s Committee to send to the Vietnam Social Security for review and resolve the temporary suspension of contributions to the retirement and survivorship fund until the end of December 2020.
2. Procedures for applying for a temporary suspension of contributions to the retirement and survivorship fund
Vietnam Social Security guides the review and identification of entities eligible to temporarily suspend contributions to the retirement and survivorship fund according to the provisions of Article 16 Decree 115/2015/ND-CP. Accordingly, employers in cases eligible for temporary suspension, perform the following confirmation procedures:
Case 1:
- Conditions: Unable to arrange jobs for employees, in which the number of employees eligible to participate in social insurance temporarily stops working from 50% of the total number of employees present before the temporary suspension of production or business and upwards.
- Procedure for confirmation:
+ Step 1: Employers prepare a written request accompanied by a list of employees at the time before the temporary suspension of production or business and at the time of the request; a list of employees eligible for participation in social insurance who must temporarily stop working.
In which, the number of employees eligible for participation in social insurance temporarily stops working compared to the total number of employees present before the temporary suspension of production or business.
+ Step 2: Submit the application to the competent authority identified as follows:
- For agencies, units, organizations, and enterprises managed by the local People’s Committee, the local Department of Labor, Invalids, and Social Affairs identifies;- For agencies, units, organizations, and enterprises managed by central ministries or sectors, the ministry or sector identifies.
Case 2:
- Conditions: Damaged over 50% of the total asset value due to natural disasters, fires, epidemics, crop failures (excluding the value of the land).
- Procedure for confirmation:
+ Step 1: Employers prepare a written request accompanied by the most recent property inventory report before the damage; A record of property damage inventory caused by natural disasters, fires, epidemics, crop failures.
In which, the value of damaged assets is calculated compared to the value of assets according to the most recent property inventory report before the damage.
+ Step 2: Submit the application to the competent authority identified as follows:
- For agencies, units, organizations, and enterprises managed by the local People’s Committee, the local financial agency identifies;- For agencies, units, organizations, and enterprises managed by central ministries or sectors, the financial agency of the ministry or sector or the Ministry of Finance identifies.
Resolution period: Within 15 working days from the receipt of the employer's request, the competent authority in the two cases mentioned above is responsible for considering, identifying, and providing a written response to the employer.
Once all necessary confirmation documents are available to identify eligibility for the temporary suspension of retirement contributions, employers submit the documents and confirmation to the local Vietnam Social Security agency.
Within 10 working days from the receipt of the employer’s request, the social insurance agency is responsible for resolving the temporary suspension of contributions to the retirement and survivorship fund; if not resolved, a written response stating the reason must be provided.
The time for the temporary suspension of contributions to the retirement and survivorship fund is calculated from the month the employer submits the written request.
The above is the entire procedure related to the temporary suspension of contributions to the retirement and survivorship fund. For detailed procedures, see:
- Article 88 Law on Social Insurance 2014;- Article 28 Circular 59/2015/TT-BLDTBXH guiding the Law on Social Insurance regarding compulsory social insurance.
Lan Anh
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