Multiple New Points in the Process of Collection and Management of Social Insurance and Health Insurance from July 01, 2018

1. Regarding the Method of Social Insurance Contribution (at Point 3.2 Clause 3 Article 7 Decision 595):

Branches of enterprises are permitted to pay social insurance at the parent company.

1. Regarding Interest Rates for Retrospective Collection of Mandatory Social Insurance, Health Insurance, Unemployment Insurance, and Occupational Accident and Disease Insurance (Point 4.2 Clause 4 Article 38):

- For retrospective collection of mandatory social insurance, health insurance, unemployment insurance, occupational accident and disease insurance due to evasion: For periods of evasion before January 1, 2016, interest is calculated according to the monthly interest rate applied in 2016; for periods of evasion from January 1, 2016, interest is calculated according to the monthly interest rate applied in each respective year.- For retrospective collection of mandatory social insurance for employees after terminating labor contracts and returning to their country, and due to salary adjustments, interest is calculated based on the average investment interest rate of the social insurance fund of the previous year in relation to the year of retrospective calculation.

1. Regarding the Issuance and Management of Social Insurance Books (Clause 6 Article 46):

Employees with social insurance books that reserve the contribution period, including those issued by the Ministry of National Defense and the Ministry of Public Security, can register to continue participating or resolving policies. The revenue management department/team is responsible for reconciling the contents recorded in the social insurance books with the contribution data provided by the social insurance of the Ministry of National Defense and the People's Public Security.

1. Regarding the Management of Data and Utilization of Health Insurance Cards (Point 2.3 Clause 2 Article 47):

Participants in health insurance (groups for which employees and entities contribute) who are late in paying health insurance for 30 days or more, the employer must be responsible according to the provisions of Article 49 Amended and Supplemented Law on Health Insurance. Specifically:

- Must pay the unpaid amount and the interest at twice the interbank interest rate calculated on the unpaid amount and delay period;- If not performed, upon the request of the competent authority, banks, other credit institutions, and the state treasury are responsible for deducting money from the deposit account of the agency, organization, or employer responsible for paying health insurance to submit the unpaid, overdue amount, and interest to the health insurance fund account;- Must reimburse all expenses for employees within the scope of the benefits, health insurance benefits that employees have paid during the period without a health insurance card.

Depending on the nature and severity of the violation, disciplinary action, administrative penalties, or criminal prosecution may be applied; if damage is caused, compensation must be made according to the provisions of the law.

Additionally, Decision 888 further amends and supplements certain contents of the appendices and forms, including:

- Appendix 01: Types of documents used as a basis for issuing, recording, and adjusting Social Insurance Books;- Appendix 03: Amendments and supplements to the types of documents used as a basis for reissuing, recording, and adjusting health insurance cards;- Form TK1-TS: Declaration form for participation, and adjustment of social insurance, and health insurance information (with accompanying instructions).

Decision 888/QD-BHXH takes effect from July 1, 2018.

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