By the end of April 2021, if enterprises still owe social insurance money, they are entitled to the policy of temporary suspension of contributions to the retirement and survivorship funds according to the provisions of Vietnam's Resolution 68?
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Vietnam: Enterprises that owe social insurance can temporarily stop paying to retirement and survivorship funds? (Illustration)
Regarding this issue, Lawnet would like to answer as follows:
Pursuant to Article 5 of Vietnam's Decision 23/2021/QD-TTg dated 07/7/2021, the conditions for supporting employers to temporarily suspend contributions to the retirement and survivorship funds are as follows:
- Regarding employers who have fully paid social insurance premiums or are temporarily suspending contributions to the retirement and survivorship fund until the end of April 2021 but have been affected by the COVID-19 pandemic, resulting in a downsizing of at least 15% employees who have contributed to social insurance at the time of application submission compared to April 2021.
The number of employees on social insurance considered to be downsized includes:
+ The number of employees with terminated public employment contracts or non-public employment contracts as prescribed by law less the number of employees who have recently concluded public employment contracts or non-public employment contracts from May 1, 2021 to the date of application submission.
+ The number of employees on suspension of employment contracts and the suspension period is at least 14 working days in a month.
+ The number of employees on unpaid leave and the leave is at least 14 working days in a month.
+ The number of furloughed employees and the furlough period is at least 14 working days in a month.
- The employees on social insurance considered to be downsized as prescribed in clause 1 hereof only include employees under public employment contracts, non-public employment contracts with indefinite term or with definite term of at least 1 month, business executives, cooperatives executives with paid salaries; and exclude those who are on pension from May 1, 2021.
Thus, according to the above regulations, enterprises that are not eligible for temporary suspension of contributions to the retirement pension fund until the end of April 2021 but still owe social insurance are not allowed to suspend payment to the retirement and death at that moment
Time limit for temporary suspension of payment to the death pension fund
Thus, Enterprises that meet the above conditions are entitled to suspend payment to the retirement and survivorship fund for 6 months from the month the enterprise submits the application.
As for a case on the payment suspension under the Vietnam's Resolution 42/NQ-CP of April 9, 2020 and Vietnam's Resolution 154/NQ-CP of October 19, 2020 and Vietnam's Resolution 154/NQ-CP dated October 19, 2020 of the Government, if the applicant is still qualified and the application is stilled approved as prescribed in Vietnam's Decision 23/2021, the suspension period of contributions to the retirement and survivorship fund due to impact of COVID-19 pandemic does not exceed 12 months.
Will interest be charged on the amount temporarily suspended from the death benefit fund at the end of the suspension period?
According to Article 7 of Vietnam's Decision 23/2021, Upon the end of the suspension period prescribed in Article 6 hereof, the employers and employees shall continue to pay premiums to the retirement and survivorship fund plus the amount that was not paid during the suspension period, no late payment interest shall be levied on the overdue amount as prescribed in clause 3 Article 122 of Vietnam's Law on Social Insurance.
However, upon the end of the suspension period of contributions to the retirement and survivorship fund, if the employer fails to make up the payments due during the suspension period, it shall comply with clause 3 Article 122 of Vietnam's Law on Social Insurance.
Thus, during the above-mentioned suspension period, if an eligible employee claims the retirement or survivorship benefit or terminates the employment contract, the employer and the employee shall make up the payments due during the suspension period to settle the claim of the employee. Specifically, it is equal to 02 times the average investment interest rate of the social insurance fund of the preceding year, calculated on the amount and time of late payment.
Bao Ngoc
