745 businesses were approved of their suspension of retirement and survivorship fund

22/05/2020 10:05 AM

The Ministry of Labor, War Invalids and Social Affairs recently said that in April 2020, the whole country recorded more than 5 million employees taking temporary leave, mainly in plain areas, regions and localities.

Accordingly, the process manufacturing industry recorded more than 1.3 million employees taking leave; Wholesale and retail industry: over 1 million employees; Warehousing and Transportation: about 400,000 employees; Accommodation and Catering Services: nearly 750,000 employees. The informal sector labor group is most vulnerable. It was also reported in a number of large corporations such as Vietnam National Textile and Garment Group, footwear enterprises, etc. that the number of orders in April was cut by 40%-60%. Therefore, a lot of difficulties occurred in maintaining jobs for workers. However, enterprises are still retaining employees by numerous measures, such as to let them take turns to rest in-turn and working hours are reduced, not to mention the dismissal.

According to Vietnam Social Security (VSS), up to now, the number of units and enterprises in the whole country that were approved of their suspension of contributions to the retirement and survivorship fund due to the impact of the COVID-19 epidemic is 745 units, corresponding to 68,359 employees. It is estimated that the suspended payment is approximately VND 259 billion. The development of participants in compulsory social, voluntary social and health insurance is currently facing certain difficulties. Statistics have shown that the number of people participating in compulsory social insurance in all provinces and cities has decreased compared to December 2019, typically: Ho Chi Minh City (210,982), Binh Duong (101,628), Hanoi (65,038), etc.

By the end of April 2020, the total number of participants in compulsory social insurance was 14,419 million people (reaching 89.9% of the assigned plan); a decrease of 421,000 people compared to March 2020 and 780,000 people compared to 2019. According to the previous guidance of the Ministry of Labor, War Invalids and Social Affairs, when conditions are met, enterprises will be temporarily suspended to contribute to the retirement and survivorship fund without exceeding 12 months.