increasing specialized inspection on social insurance issues in Vietnam, specialized inspection on social insurance issues in Vietnam, inspection on social insurance issues in Vietnam, social insurance issues in Vietnam, increasing specialized inspection on social insurance issues,

Increasing specialized inspection on social insurance issues in Vietnam

In Vietnam, there are many businesses that tend to make tricks on the social insurance system so that they can avoid paying social insurance contributions for their employees as the part the employer has to pay is significantly higher than that of the employee. To prevent this situation, Vietnam has entered a period of increasing specialized inspection of social insurance problems in Vietnam.

At meetings and dialogues with employees on the occasion of Employees’ Month, many employees expressed their frustration and worry when the debt situation for social insurance premiums increased rapidly over a short period of time. 

Therefore, the employees have called on the competent authorities to take measures to inspect, examine and strictly handle the violations of the law with regard to the social insurance system by the employer so that the employee’s rights are preserved. 

The violations are not limited to the avoidance of payment of social insurance contributions but can also be expressed in other forms, such as late payment of social insurance, paying social insurance premiums at a low rate compared to regulations (normally at the minimum regional wages), etc. directly affecting the legitimate rights and interests of employees.

Take measures to guarantee that the employers fulfill their obligations

Due to the impact of the Covid-19 epidemic in Vietnam, businesses face many difficulties in production and business, especially tourism and trade businesses, leading to the situation in which the employers try to cut costs, even the most basic cost that is to pay the social insurance contributions for their employees.

These cases keep increasing as the pandemic gets worse and even now when the pandemic is slowly stabilized, the situation doesn’t get improved but remains the same, showing the phenomenon that the employers have felt the benefits from these actions and do not want to go back to the way before. 

However, it should be noted that even during the peak of the pandemic, there are no regulations from the Vietnamese Government stipulating that the employers can avoid or pay less than the actual salary of the employees. 

There are supporting policies for the employers from the Government to reduce some obligations of the employers in regards to the payment of social insurance contributions, like:

(i) Policy to reduce the contribution to the labor accident and occupational disease fund from 0.5% to 0% of the salary fund as the basis for paying social insurance contributions for units and enterprises, with the initial support amount expected to be about 4,000 billion VND (Resolution 68/NQ-CP dated July 1, 2021)

(ii) Policy on temporary suspension of contributions to the retirement and survivorship fund and the estimated amount of temporary suspension for eligible businesses is about VND 8,000 billion (Resolution 68/NQ-CP dated July 1, 2021)

(iii) The policy of reducing Unemployment Insurance contributions from 1% to 0% of the monthly salary fund as the basis for paying unemployment insurance contributions for employers, with a support amount of about VND 8,000 billion (Resolution 116/NQ-CP dated September 24, 2021)

However, there were no policies by the Government that affected the legitimate rights of employees as they are the groups that suffered the most from the pandemic, even more than the employers. 

Consequently, to prevent the actions of failure to comply with the employer’s obligations to the employees, the Vietnam Social Insurance said that in the coming time, the social insurance industry will strengthen the implementation of specialized inspection of paying social insurance contributions.

Furthermore, the People’s Committees of the provinces and cities need to direct the state management agency in charge of labor and the inspection agency to strengthen the inspection of the implementation of policies and laws on social insurance, concentrated in enterprises with large amounts of debt for a long time to ensure the protection of legitimate rights and interests of employees.

ASL LAW is the top-tier Vietnam law firm for Employment and Labor Law. If you need any advice, please contact us for further information or collaboration.


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