Hanoi-Vietnam: Deadline for notification of reduction in social insurance premium for resigned employees

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According to the provisions of Article 47 Labor Code 2012, when terminating an employment contract, the employer is responsible for fully paying amounts related to the interests of employees, including the obligation to confirm and return social insurance to the employees.

Based on Article 10 of Official Dispatch 1734/BHXH-QLT regarding the guidelines for collecting social insurance contributions and premiums of social insurance, health insurance, unemployment insurance, occupational accident and occupational disease insurance; management of social insurance books and health insurance cards, when an employee resigns, resulting in a reduction in the number of employees, the employer must prepare a notification the reduction of social insurance premium for the following month starting from the 28th of the previous month and after notifying the reduction but not declare arising changes in previous month. The employer shall also make a notification from the first day of the following month and pay health insurance premiums for the following month.

Example: An employee resigns on March 31, 2019.

- If the unit prepares the application in April 2019 and notifies the reduction in the number of employees from April 2019 on April 1, 2019, it must pay the additional value of the health insurance card for April 2019, and the card can be used until April 30, 2019.

- If the unit prepares the application in April 2019 and notifies the reduction in the number of employees from April 2019 to March 28, 2019, it only pays social insurance, health insurance, unemployment insurance, occupational accident, and occupational disease insurance premiums up to March 2019, and the health insurance card can be used until March 31, 2019.

Note: After preparing the application in April 2019, it is not allowed to prepare the application for March 2019 on the remaining days of March 2019.

Additionally, when there is an increase in the number of employees, the employer must promptly notify the increase, and the health insurance card will be valid from the date of preparing the application through the electronic transaction system.

- Nguyen Trinh -

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