Vietnam: Suspension of contributions to the retirement fund due to the Covid-19 pandemic

1. Eligible entities

Employees and employers under compulsory social insurance as prescribed in Article 2 of the Law on Social Insurance 2014 of Vietnam.

2. Support requirements

(1) 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.

(2) 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.

3. Suspension period of contributions to the retirement and survivorship fund

- The eligible employees and the employer prescribed in Article 5 hereof are entitled to a 6-month suspension of payment to the retirement and survivorship fund from the date on which the employer submits the application.

- As for a case on the payment suspension under the Resolution No. 42/NQ-CP and Resolution No. 154/NQ-CP of the Government of Vietnam, if the applicant is still qualified and the application is stilled approved as prescribed in this Decision, the suspension period of contributions to the retirement and survivorship fund due to impact of COVID-19 pandemic does not exceed 12 months.

4. Payment of unpaid premiums during suspension period to the retirement and survivorship fund

- 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 (including the furloughed employees as prescribed in Article 99 of the Labor Code), no late payment interest shall be levied on the overdue amount as prescribed in clause 3 Article 122 of the Law on Social Insurance 2014 of Vietnam. 

- 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 the Law on Social Insurance 2014 of Vietnam. 

- 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.

5. Procedures to receive support

- From the effective date of this Decision until June 30, 2022 inclusive, the employer shall submit an application form No. 01 in Appendix hereto appended to the social security agency to which the social insurance premiums are paid, and 01 copy to Department of Labor, War Invalids and Social Affairs of Vietnam for supervision.

- Within 5 working days after receiving such an application from the employer, the social security agency shall consider approving the application for suspension of payments to the retirement and survivorship fund; if the application is rejected, it shall provide explanation in writing.

- Regarding the applications for suspension of payments to the retirement and survivorship fund prescribed in Article 16 of the Vietnam Government’s Decree No. 115/2015/ND-CP, the procedures shall conform to the Circular No. 59/2015/TT-BLDTBXH.

Bao Ngoc

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