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Social insurance debts amount to VND14.7 trillion

Wednesday,  Nov 29,2017,22:26 (GMT+7)
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Social insurance debts amount to VND14.7 trillion

HCMC – Companies across the country still owe about VND14.7 trillion (over US$646 million) in social insurance premiums, which may leave their employees on the verge of losing their health and retirement insurance benefits, Thanh Tra newspaper reports.

Unpaid social, healthcare and unemployment insurance premiums accounted for 6.3% of all receivables by November, according to Vietnam Social Insurance.

Of which, debts of less than six months made up a large proportion at VND7.3 trillion (over US$321 million), and enterprises failed to pay healthcare insurance premiums of more than VND1.5 trillion (around US$69 million).

Overall, as many as 102,900 companies still failed to pay social insurance premiums totaling about VND14.7 trillion for around 2.6 million employees.

Social insurance officials have filed about 8,800 lawsuits involving enterprises accused of owing roughly VND6 trillion. However, courts at all levels have settled roughly 4,000 cases.

The chief judge of the Supreme People’s Court Nguyen Hoa Binh was cited by the newspaper as saying that prevailing legal procedures require social insurance agencies to inspect enterprises regarding insurance payments, and impose fines on those owing them.

Upon inspections, sanctions, and administrative procedures, he added, courts will handle the cases. This is why courts have turned down numerous cases as their procedures are not in line with the newly-issued criminal procedure code.

The Law on Trade Union, the 2012 Labor Code, the 2014 Social Insurance Law and the 2015 Civil Code allow labor unions on behalf of their employee members to file lawsuits against companies failing to pay social insurance premiums in order to guarantee their legitimate rights and interests.

Reports of local governments across the country showed as of end-October, more than 2,300 specialized inspections on payments of social, healthcare and unemployment insurance premiums had taken place. However, the figure is just a drop in the ocean.

Deputy general director of the Vietnam Social Insurance Tran Dinh Lieu asked agencies nationwide under his organization to carry out more specialized inspections in a bid to reduce the amount of insurance debts.

“The Vietnam Social Insurance and the Supreme People’s Court are working together to come up with a circular guiding the inspections and sanctions against enterprises that fail to comply with or not strictly conform to (prevailing regulations),” he said.

The National Assembly had passed the amended Penal Code which goes into force early next year. Failing to pay social insurance in due time is treated as a criminal offense. Therefore, courts at all levels will handle such cases in the coming time.
 

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Giấy phép Báo điện tử số: 321/GP-BTTT, cấp ngày 26/10/2007
Deputy Editor-in-Chief: Pham Huu Chuong
Managing Editors: Nguyen Van Thang, Huynh Cam Tung
Head Office: 35 Nam Ky Khoi Nghia St., Dist.1, Ho Chi Minh City, Vietnam. Tel: (84.8) 829 5936; Fax: (84.8) 829 4294.
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