VSS gets tough on enterprises that owe social insurance contributions

10/04/2019 02:37 PM


Organising inspections, issuing sanctioning decisions, and sending results to investigation agencies as a basis for criminal handling are some of the weighty solutions being applied by the social insurance sector to enterprises which owe social and health insurance contributions.

According to the Collection Department of the Vietnam Social Security (VSS), in the first two months of 2019, the sector collected 47.05 trillion VND in social and health insurance fees, up 23.8 percent compared to the same period last year. Of this, the collection of social insurance, unemployment insurance and health insurance respectively reached upwards of 33.3 trillion VND, 2.4 trillion VND and 11.2 trillion VND.

A number of localities recorded high collection levels in the period, including Dong Nai  with over 2.94 trillion VND; Binh Duong, over 3.1 trillion VND; Hanoi, nearly 5.5 trillion VND; and Ho Chi Minh City, more than 8.8 trillion VND.

However, the total interest-bearing debt (from one month and above) of provinces and cities remains high, standing at over 6.65 trillion VND. This situation continues to cause difficulties for social insurance agencies in implementing policies on social insurance and health insurance for employees.
The debts were mainly reported in the northern key economic regions of Hanoi, Hai Phong, Quang Ninh, and Hung Yen; and the southern localities of Ho Chi Minh City, Dong Nai, Binh Duong, and Ba Ria-Vung Tau. These localities have strong industrial, trade, tourism, and service activities, which greatly contribute to the country’s GDP.
In recent times, the VSS requested that its chapters in various localities clearly identify the causes of rising debts, as well as assign staff to closely follow units and enterprises to urge them to accelerate the collection.

Unannounced inspections for all businesses that have owed social insurance contributions for three months and more were also requested.
Directors of the provincial social insurance agencies have been asked to actively approve and issue decisions on unscheduled inspections of social and health insurance payments, as well as to supervise and speed up the implementation of conclusions after these inspections.

The VSS also asked its localities’ chapters to issue decisions on penalising businesses that owe social insurance contributions and send the results to authorised agencies (police agencies, courts, procuracy, and labour unions) as the basis for further processing.
For those that deliberately escape payment of insurance contributions and have long-term debt arrears, the social insurance agencies will petition police agencies to investigate and commence criminal proceedings against them under the Criminal Code./.

 

Vietnam Social Security