Viet Nam Social Security coordinates relevant agencies to reduce evasion of social insurance payment
27/10/2023 09:01 AM
The delay and evasion of paying social, health and unemployment insurance has been gradually fixed thanks to close and active coordination between Viet Nam Social Security (VSS) and relevant ministries and sectors.
Data from the VSS revealed that in the first nine months of this year, the amount of late payment of social, health and unemployment insurance decreased 2.6 per cent compared to the same period last year.
After being inspected by VSS and relevant ministries and sectors, 1,095 enterprises had paid an amount of VND107 billion (US$4.39 million) to the social, health and unemployment insurance fund in the first nine months of this year.
Additionally, VSS had issued 260 decisions on sanctioning administrative violations with a fine of VND8.6 billion ($353,000) for violators.
It also urged 387 units to participate in social insurance for employees.
Along with other synchronous solutions, the effective inspection has positively contributed to the recovery of late payment amounts of social, health and unemployment insurance.
The debt ratio of social, health and unemployment insurance has always stayed at a low level and decreased steadily over the years. The debt ratio was 3.1 per cent in 2021; 2.91 per cent in 2022. The number is expected to be 2.69 per cent in 2023.
After being inspected, many acts of abuse and profiteering of social and health insurance funds were discovered and promptly handled.
Viet Nam Social Security detects and promptly handles many violations of social and health insurance to ensure the rights of participants
The illegal acts include employees using fake retirement certificates or improperly-issued certificates given by health care facilities to profiteer from social insurance benefits; medical facilities and employees taking advantage of fake retirement certificates to profiteer from social insurance benefits; patients borrow other people's health insurance cards to go to medical facilities for examination and treatment; health-insurance participants go to medical facilities for examination and treatment many times to get a lot of medicine for non-treatment purposes.
A number of cases of abuse and profiteering from the health insurance fund were discovered, such as cases at a private polyclinic in the southern province of Dong Nai; or at Dong Van Ward Medical Station, Duy Tien Town, in the northern province of Ha Nam.
Viet Nam Social Security has applied information technology (IT) to implement the inspections. It has carried out electronic data processing from its professional software and databases from relevant agencies to enhance the effectiveness of the inspections.
Based on database screening, units showing signs of violations of regulations on social, health and unemployment insurance, were promptly detected. Then, Viet Nam Social Security made a list of the units to urge them to finish their payments of social, health and unemployment insurance. The agency also conducted unannounced inspections of the units to force them to complete their payments.
Illustrative image (internet)
Delaying and evading social insurance payments still occurs in many businesses, significantly impacting the rights of employees.
From 2018 to 2023, the Vietnam Social Security submitted 417 files recommending prosecution to the investigation agency.
These cases involved insurance fraud, unemployment and health insurance violations, as well as cases related to evasion of insurance contributions.
In 2023, 26 cases were brought to prosecution. Of these, 15 have been prosecuted, yielding eight legally binding verdicts. Individuals and organisations implicated are required to pay over VNĐ2.69 billion (some US$106,000) to the social insurance agency, with VNĐ2.38 billion ($93,800) already recovered.
The figures indicate a complex and ongoing issue of debt and evasion of social insurance payments, sparking significant consequences, the Voice of Việt Nam reported.
This not only affects the rights of workers but also undermines long-term social security benefits and trust in the social insurance system.
Experts have called for stricter penalties for employers delaying or evading social insurance payments.
Phạm Minh Huân, former deputy minister of the Ministry of Labour, Invalids and Social Affairs, said that the failure to fulfil social insurance obligations lies with the businesses.
While some businesses face difficulties and seek extensions for insurance payments, agreements must be reached between insurance agencies and businesses.
Once businesses recover, they must promptly fulfil their social insurance obligations.
Deliberate evasion of social insurance contributions should be legally prosecuted, as administrative penalties or criminal prosecution are stipulated by law.
He also emphasised the complexity of addressing such violations. Legal provisions exist for both administrative and criminal measures, yet challenges remain due to policy mechanisms and practical implementation.
The promotion of IT applications and digital transformation in inspection activities has shortened cost, human resources and reduced direct-working time at enterprises to avoid affecting the production and business activities of the enterprises, especially enterprises with large numbers of employees.
Applying IT in inspecting activities helps to quickly detect unusual signs and increase the volume of inspections while still ensuring legality and compliance with the processes and regulations of inspection law.
VSS always actively coordinates with relevant ministries and sectors in inspection activities to detect, prevent and promptly handle acts of delay and evasion of social, health and unemployment insurance payments as well as abuse and profiteering of social and health insurance funds.
Regarding inspection authority, VSS only has the function of specialised inspection of social, health and unemployment insurance contributions. It does not have the function of inspecting the benefits that the participants received from the social and health insurance funds.
Therefore, VSS always actively works with relevant ministries and sectors to deal with other violations relating to abuse and profiteering of the social and health insurance funds.
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Unemployment
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VSS - ISSA Guidelines on Social Security