Before receiving awards, participating in project bidding or being granted business travel cards, units and businesses must have their social security payments confirmed by the VSS.

According to the Ha Noi Social Security, 66,702 units and enterprises owe social security and health insurance payments for more than one million employees. The total debt hit more than VND4.6 trillion (US$197 million), which accounts for 9.5 per cent of the collection. This figure increased by more than VND1.8 trillion compared to that of December 2019.

From 2010 to 2015, the city social security agency sued 344 units with a total debt of VND328.6 billion at the time of the lawsuit. So far 36 units have not complied with the court's rulings, causing their debts to rise to VND90.8 billion by the end of June this year.

According to the leader of the Hanoi Social Security, due to the COVID-19 pandemic, a number of units and enterprises face difficulties in maintaining production and business with products being delayed in consumption, the consumption market being narrowed, resulting in declining revenues. It is difficult for businesses to balance their revenues and expenditures, especially to find the budget to pay social security and health insurance.

Illustration Photo

Businesses which have been affected by COVID-19 temporarily have had their payments to retirement and survival funds suspended.

However, some enterprises blame the difficulties caused by COVID-19 for postponing the payment.

During the social distancing period, the social security agency had to suspend inspections at debt-owing companies.

With the goal of not making changes to targets in 2020, the Ha Noi Social Security said it would analyse and categorise debts based on types of production and business; length of debt and causes of debt. The agency will evaluate the financial capacity of every business to have prompt solutions. In particular, the social security agency will closely follow and collect the payment when the businesses delay for one month or more.

The agency will regularly assess the performance of the districts’ debt collectors, conduct inspections at debt-owning units and urge them to strictly comply with the laws on social security and health insurance.

Naming and shaming and giving certificates to units which complete insurance payment are expected to be effective solutions to reduce the debt ratio in the future, a representative of Ha Noi Social Security said./.