Accordingly, in the past time, the bankrupt employers (collectively referred to as units) did not pay enough social insurance premiums, leading to the employees' social insurance benefits not being resolved in a timely manner.

On the basis of the VSS's proposal in Official Letter No. 1936/BHXH-CSXH dated July 5, 2021 on settlement of social insurance benefits for employees at units that have not fully paid social insurance contributions; According to the response of the Ministry of Labor, War Invalids and Social Affairs (MOLISA) in Official Letter No. 2591/LDTBXH-BHXH dated August 9, 2021, the VSS guides the social security agencies of provinces and centrally-run cities to unify the implementation of the social insurance regime for employees. Employees who have met all conditions, including the conditions for the time they actually paid to the social insurance fund (excluding the time they owe social insurance contributions) at the bankrupt employers owing social insurance contributions as follows:

1. Regarding the maternity regime in case of childbirth and child adoption

The employee has paid social insurance premiums to the sickness and maternity fund (excluding the period of outstanding social insurance payment) for 6 months or more as prescribed in Clause 2, Article 31 of the 2014 Law on Social Insurance or 3 months or more according to the provisions of Clause 3, Article 31 of the 2014 Law on Social Insurance, if the basis for determining that the employee has not yet enjoyed the benefits, the social security agency shall settle the maternity allowance according to regulations at the time of the employee's birth-giving or adoption.

When the period of participation in social insurance is paid additionally and the benefit level is changed, the benefit level shall be adjusted according to the provisions of the policy (at the time the employee is eligible) to pay the additional payment.

Guidelines for the implementation of social insurance regimes for employees at bankrupt employers still owing social insurance contributions (Illustrative image)

2. About the retirement regime

2.1. The social security agency shall settle pension enjoyment for employees who fully meet the age and period of payment of social insurance premiums (excluding the period of outstanding social insurance payment) according to the provisions of the policy at the time of pension enjoyment.

When the period of participation in social insurance is paid additionally, the time of payment of social insurance premiums shall be added to adjust the retirement regime according to the provisions of the policy at the time of pension enjoyment. At the same time, the amount of the difference arising under the provisions of the salary policy from time to time shall be determined to make additional payments to employees from the time of enjoyment.

2.2. Settlement of lump-sum social insurance allowance

a) For beneficiaries specified at Points b and c, Clause 1, Article 60 of the 2014 Law on Social Insurance: Settlement of lump-sum social insurance allowances or the period of payment of social insurance premiums (excluding the period of unpaid social insurance contributions). When the time of participation in social insurance is paid in full and the employee requests it, he/she will be entitled to a lump-sum payment of additional social insurance benefits. The settlement of lump-sum payment of additional social insurance contributions when the time of participation in social insurance is fully paid shall comply with the guidance at Point dd of this Clause.

b) For beneficiaries specified at Point a, Clause 1, Article 60 of the 2014 Law on Social Insurance, whose period of participation in social insurance, if including the arrears of social insurance premium payment, is still less than 20 years, the settlement shall be the same as for the case in point a of this clause.

c) For beneficiaries according to Resolution No. 93/2015/QH13 dated June 22, 2015 of the National Assembly, the settlement shall be the same as for the case at Point a of this Clause. The determination of employees after one year of leave to serve as a basis for considering conditions for enjoying lump-sum social insurance according to Resolution No. 93/2015/QH13, based on the time of last leave before the employee requests for the lump-sum social insurance allowance.

d) In order to ensure long-term social insurance benefits for employees, the lump-sum social insurance entitlement shall not be settled for the case of having time to participate in social insurance, if including the period of outstanding payment of social insurance contributions, which is full 20 years or more, except for the case specified at Points b and c, Clause 1, Article 60 of the 2014 Law on Social Insurance.

dd) When the period of participation in social insurance is fully paid, the social security agency shall record and reserve the entire period of payment of additional social insurance premiums. In case the employee continues to wish to receive lump-sum social insurance benefits, the agency shall calculate the previously settled time with the additional payment period to re-determine the new benefit rate according to the provisions of Article 63 of the 2014 Law on Social Insurance on salary adjustment at the time of settlement of adjustment and deduct the recalculated benefit corresponding to the calculated benefit period including the rounded time (if any) for additional payment to the employee.

For example: Mr. Nguyen Van A has a period of participating in social insurance from January 2016 to October 2019, which is 3 years and 10 months; in which the unit has only paid social insurance premiums for Mr. A from January 2016 to July 2018, but not the period from August 2018 to October 2019. Suppose in June 2021 Mr. A proposes to enjoy the lump-sum social insurance allowance. The social security ency shall receive lump-sum social insurance benefits for Mr. A with the actual time of payment to the social insurance fund from January 2016 to July 2018 for 2 years and 7 months with an average monthly salary of 6,000,000 VND.

Mr. A's lump-sum social insurance benefits equal:

VND 6,000,000 x 3 years (2 years and 7 months rounded) x 2 months = VND 36,000,000.

Suppose Mr. A was paid for additional social insurance premiums in August 2022 for the period from August 2018 to October 2019 with the same salary of the previous period. The social security agency shall decide to supplement the lump-sum social insurance allowance as follows:

- The total period of payment of social insurance premiums for Mr. A is 03 years and 10 months, rounded to 4 years.

- Assume that the average monthly salary calculated at the time of August 2022 is VND 7,000,000.

- The total amount of lump-sum social insurance benefits after recalculation is:

7,000,000 VND x 4 years x 2 months = 56,000,000 VND.

- The amount of Mr. A's additional benefit adjustment is:

56,000,000 VND - (7,000,000 VND x 3 years x 2 months) = 14,000,000 VND.

3. About the survivorship regime

3.1. Settlement of funeral allowance for relatives when employees have full 12 months of payment of compulsory social insurance or more as prescribed in Clause 1, Article 66 of the 2014 Law on Social Insurance or have a total period of payment of compulsory and voluntary social insurance premiums for full 60 months or more as prescribed in Clause 1, Article 80 of the 2014 Law on Social Insurance (the period of payment of compulsory social insurance premiums does not include the period of outstanding social insurance payment).

3.2. Settlement of monthly survivorship allowance for relatives when the employee has had 15 years of compulsory social insurance payment or more (excluding the period of outstanding social insurance payment) according to the provisions of Point a, Clause 1, Article 67 of the 2014 Law on Social Insurance, whose relatives are eligible for monthly survivorship allowance but do not choose to receive a lump-sum survivorship allowance.

The time to enjoy the monthly survivorship allowance shall comply with the provisions of Clause 3, Article 68 of the 2014 Law on Social Insurance.

3.3. Settlement of lump-sum survivorship allowance for the actual time of payment of social insurance premiums (excluding the period of debt of compulsory social insurance premiums) in the following cases:

a) The employee has not had enough 15 years of payment of compulsory social insurance premiums as prescribed in Clause 1, Article 69 of the Law on social insurance in 2014 (including the period of outstanding social insurance payment);

b) Employees who have paid compulsory social insurance premiums for full 15 years or more (excluding the period of outstanding social insurance contributions) and their relatives who are eligible for monthly survivorship allowance wish to enjoy a lump-sum survivorship allowance as prescribed in Clause 3, Article 69 of the 2014 Law on Social Insurance.

c) Employees who have paid compulsory social insurance premiums for full 15 years or more (including the outstanding period of social insurance contributions) and their relatives who are eligible for monthly survivorship allowance wish to enjoy a lump-sum survivorship allowance as prescribed in Clause 3, Article 69 of the 2014 Law on Social Insurance.

d) Employees who have paid compulsory social insurance premiums for full 15 years or more (including the time they owe social insurance contributions) but have no relatives who are eligible for monthly survivorship allowance as prescribed in Clause 2, Article 67 of the 2014 Law on Social Insurance.

dd) The employee has 15 years of payment of compulsory social insurance or more (excluding the period of outstanding social insurance payment) but has no relatives who are eligible for monthly survivorship allowance as prescribed in Clause 2, Article 67 of the 2014 Law on Social Insurance.

When the period of participation in social insurance is fully paid, the additional lump-sum survivorship allowance shall be settled similarly to the lump-sum social insurance allowance.

3.4. In order to ensure long-term social insurance benefits for employees, the survivorship allowance shall not be settled for employees who have paid compulsory social insurance premiums for 15 years or more (including the time they owe social insurance contributions), have eligible individual and apply for a monthly survivorship allowance.

4. Implementation procedure

4.1. Maternity regime in case of childbirth or child adoption: The same applies to those who quit their jobs before the time of childbirth or child adoption.

4.2. Retirement and survivorship regime: Same as for those who reserve their time to participate in social insurance.

In case of other problems related to the implementation of social insurance regime for employees in bankrupt units, in order to ensure the interests of employees, VSS will continue to consult competent authorities for settlement.

Social security agencies of provinces and centrally-run cities shall implement and promptly report arising problems (if any) to the VSS for research and guidance./.