The Government of Vietnam: 6-month suspension of contributions to the retirement and survivorship fund

According to the Resolution No. 68/NQ-CP, 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 compared to April 2021 (including the employees on furlough,  suspension of employment contracts, and unpaid leave):

The employees and the employers are entitled to a 6-month suspension of payment to the retirement and survivorship fund from the date of application submission.

It is notable that for a case on the payment suspension under the Resolution No. 42/NQ-CP of April 9, 2020 and Resolution No. 154/NQ-CP of October 19, 2020 of the Government, if the applicant is still qualified, the application will be approved as long as the suspension period does not exceed 12 months.

According to the Resolution No. 42/NQ-CP and Resolution No. 154/NQ-CP:

Regarding employers aftected by Covid-19 resulting in a downsizing of at least 20% employees who have contributed to social insurance compared to the time competent agencies announcement of pandemic (including the employees on furlough,  suspension of employment contracts, and unpaid leave), the employees and the employers are entitled to a 3-month suspension of payment to the retirement and survivorship fund from the date of application submission.

Currently, pursuant to Article 85 of the Law on Social Insurance 2014 of Vietnam, levels of payment on the retirement and survivorship fund:

- Employees shall monthly pay 8% of their monthly salary to the retirement and survivorship allowance fund.

- Employers shall make monthly payments of 14% of the salary funds on social insurance premiums to the retirement and survivorship allowance fund.

Bao Ngoc

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