Penalty for Employers up to VND 75 Million for Late Payment of Mandatory Social Insurance

Illustrative Image (source: internet)

Clause 4, Article 38 of Decree 28/2020/ND-CP stipulates fines ranging from 12% to 15% of the total amount of mandatory social insurance contributions, unemployment insurance at the time of making the administrative violation record, but not exceeding VND 75,000,000 for employers committing any of the following acts:

a) Late payment of mandatory social insurance, unemployment insurance;

b) Incorrect payment of social insurance, unemployment insurance that does not amount to evasion;

c) Insufficient payment of social insurance, unemployment insurance for the number of employees obligated to participate in mandatory social insurance, unemployment insurance without evasion.

In addition, this Decree also stipulates fines ranging from 18% to 20% of the total amount of mandatory social insurance contributions, unemployment insurance at the time of making the administrative violation record, but not exceeding VND 75,000,000 for employers who fail to pay mandatory social insurance, unemployment insurance for all employees obligated to participate in mandatory social insurance, unemployment insurance, which does not amount to criminal liability.

Fines ranging from VND 50,000,000 to VND 75,000,000 will be imposed on employers who evade mandatory social insurance, unemployment insurance contributions without reaching the level of criminal liability.

Besides fines, the Decree also requires the back payment of mandatory social insurance, unemployment insurance for the violated acts. The penalty includes the interest calculated at twice the average investment interest rate of the social insurance fund of the previous year, based on the unpaid, late payment, or evaded amount for the violated acts. If the enforcement is not carried out, at the request of the competent authority, banks, other credit institutions, or the state treasury are responsible for deducting from the employer's deposit account to pay the unpaid, late paid amount and its interest, calculated at the highest non-term deposit interest rate of state commercial banks announced at the time of penalty, to the account of the social insurance agency for violations under Clauses 4, 5, 6 of this Article that exceed 30 days.

See more related regulations in Decree 28/2020/ND-CP effective from April 15, 2020.

Thu Ba

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