Illustrative image

Accordingly, organizations and enterprises that delay or evade the payment of compulsory SI or UI contributions must pay an additional 0.03% per day, calculated on the delayed and evaded amount and number of days.

Vietnam Social Security (VSS) is responsible for monthly reviewing and identifying enterprises that delay or evade SI and UI contribution payments, and for sending a written reminder within the first 10 days of the month. The reminder must specify the amount and number of days of late or unpaid contributions; the additional amount of 0.03% per day, calculated on the delayed or unpaid amount and duration; relevant legal provisions on measures for handling delayed or evaded payments; the time limit that a delayed payment is considered as an evasion and the corresponding penalty.

The Decree clarifies the following definitions:

Delayed payment refers to the outstanding amount that an employer fails to pay after the due date for SI or UI contributions. The number of delayed days is counted from the day following the statutory registration or payment deadline.

Evasion is determined when an employer fails to register, fails to pay SI or UI, or underreports wages, and still does not make rectifications within 60 days after the due date.

Enterprises affected by officially declared natural disasters, epidemics, emergencies, or other force majeure events shall not be considered as evading contributions. However, they must submit documents proving the force majeure cause to VSS before the 25th day of the month in which the reminder is issued.