Payment of maternity benefit: in case postponing payment of contributions to retirement and survivor benefit funds in Covid-19 pandemic

18/08/2020 08:47 AM


In order to reduce difficulties for employers and employees caused by the impact of the COVID-19 crisis, Viet Nam Social Security (VSS) has provided guidance on postponing payment of contributions to retirement and survivor benefit funds. Under the circumstances, will the maternity benefit be affected given that many employees have experienced the interrupted duration of social insurance contribution?

According to Clause 2, Clause 3 Article 31 of the Law on Social Insurance (SI), female employees giving birth are entitled to maternity benefits if they  contribute to the social insurance fund for 6 months or more within 12 months before giving birth. In case a female employee who has contributed to SI fund for more than 12 months  has to take a leave of absence as prescribed by a competent medical clinic, the qualifying condition of contribution duration is 3 months or more within 12 months before giving birth.

Implementing the Prime Minister’s Directive No. 11/ CT-TTg on urgent tasks and solutions to reduce difficulties for production and business, ensure social security in response to Covid-19 pandemic, on March 17th 2020, VSS issued document No. 860/BHXH-BT guiding temporarily postponed social insurance contribution into the retirement and survivor fund for those affected by Covid-19 pandemic until the end of June or December 2020 and not charging interest on late payment penalties. Accordingly, the objects to be temporarily postponed are enterprises of passenger transport, tourism, accommodation, restaurants and other special industries facing with difficulties in the pandemic and are resulted the unemployment situation.

Under the circumstances, the maternity benefit of many employees will be affected when they have experienced the interrupted duration of social insurance contribution. The details are as follows:

Case 1: The employee working in the enterprises subjected to postponing payment of contributions to retirement and survivor benefit funds

During this period, in order to ensure employees’ benefits, the enterprise still has to fully and promptly contribute to the sickness and maternity, the work injury and occupational disease, the health insurance and unemployment insurance funds

As a result, the female employees are entitled to the maternity benefits when giving birth.

Case 2: The employee who works for an enterprise subjected to postponing payment of contributions to retirement and survivor benefit funds, is absent from work during the Covid-19 outbreak,

- In case the company still pays the severance allowance and contributes to SI fund, the  maternity benefit of the worker then will not be affected.

- If there is an agreement of a leave without salary, it should be applied Clause 3, Article 85 of the Law on Social Insurance: “Employees who do not work and do not receive a salary for 14 working days or more in a month do not have to contribute to SI fund. This period of time is not counted for entitlement to SI benefits, except for maternity leave”. Then, the maternity benefit of the employee will be affected or not depending on the actual situation.

VSS