spotlights social insurance
HA NOI — A fight back
has begun against wanton evasion of paying social-insurance fees for labourers
by many Vietnamese companies.
Inspectors in charge of
making sure the regulation is implemented have been told in a circular to make
sure they carry out their duties.
In the circular, jointly
issued recently by the Ministry of Labour, Invalids and Social Affairs (MOLISA),
the Finance Ministry and the State Bank of Viet Nam, enterprises that are late
paying fees must not only pay their debt, but also interest on those debts.
Inspectors from MOLISA
have been given authority to ask banks to deduct the money from business
accounts and send it to the Social Insurance Fund.
Employers who refuse to
pay their debts, or find it impossible to pay them within 30 days, will incur a
rising interest rate.
The circular follows a
Government decree to impose fines, ranging from VND15 million (US$937) to VND20
million ($1,250) on violators.
The decree also allows for
operating licences to be temporarily or permanently revoked. However, no cases
of violation have been settled since the decree came into effect last year.
Statistics from Viet Nam
Social Insurance show about 33 per cent of businesses did not buy compulsory
social insurance last year. This was only four per cent less than last year.
The insurance company said
many enterprises had either not or not fully participated in buying
social-insurance cards for their employees.
This had led to an
outstanding nationwide debt totalling VND1.2 trillion ($75 million) last year.
In addition to claiming
they were operating at a loss, many enterprises did not pay the fees because of
their ignorance about the social-insurance policy or made use of policy
loopholes to avoid paying.
In the northern province
of Phu Tho, businesses owed about VND38 billion last year. Deputy director of
the province’s Social Insurance, Cao Tien Khiet, said several hundred
companies had not paid far any social insurance cards for their labourers.
Khiet said the provincial
insurance authorities had no authority to punish violators. They could only put
the situation to MOLISA for assessment and punishment.
Even now when tools to
punish violators are available, people still insist that synchronised efforts
must be taken to force enterprises to pay social insurance even if they claim
their business is not making money or has no money in its banks account.
This is why they have
requested inspectors to force these enterprises to stop operating - and even
take criminal proceedings against them. — VNS