Reflecting on the recent situation of late payment of social insurance, Mr. Duong Anh Duc, Vice Chairman of the Ho Chi Minh City People's Committee, said that in 2023, Ho Chi Minh City authorities issued 239 administrative penalty decisions with a total amount of more than 13 billion VND from units, but only more than 2.2 billion VND was paid.

Even when the city enforced the collection of more than 4.4 billion VND in social insurance debt, the enterprise only paid a fine of 50 million VND (about 1%).

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Illustration photo.

The reason, according to Mr. Duc, is that many units provide penalty account numbers but the accounts do not have money. Even when there is money in the account when forced, the violating unit still does not cooperate.

"We have taken all measures to recover late social insurance payments, but the units still do not comply," said Mr. Duc.

From the above reality, the Vice Chairman of Ho Chi Minh City suggested that state management should supplement regulations on administrative sanctions for managers, operators, and legal representatives of violating units to propose prosecution.

With current regulations, there are units that owe tens of billions of dong in social insurance money but have not yet been prosecuted.

Regarding this issue, answering the press on the evening of January 17, Director of Vietnam Social Security Nguyen The Manh said that Vietnam Social Security is continuing to coordinate with the Ministry of Labor, Invalids and Social Affairs and other ministries and branches to amend and introduce stricter sanctions.

For cases of late payment of social insurance - currently only administrative penalties are imposed, but in the future there will be heavier sanctions such as exit bans and increased fines like those imposed by the tax sector.

In the Draft Law on Social Insurance Amendment, the Ministry of Labor, Invalids and Social Affairs proposed to supplement regulations on the responsibilities of agencies in identifying and managing subjects eligible for social insurance participation, and at the same time amend and supplement many measures and sanctions to handle the situation of social insurance evasion.

Specifically, the regulation stipulates that employers who owe social insurance must pay an amount equal to 0.03% per day calculated on the amount of money they have evaded (such as in the tax sector); the decision to stop using invoices for employers who have evaded social insurance payments for 6 months or more.

At the same time, the decision to postpone exit for employers who evade paying social insurance for 12 months or more; the social insurance agency recommends prosecution for cases showing signs of crime of evading paying social insurance according to the provisions of the Penal Code.

In addition, to ensure the rights of employees, the draft revised Law on Social Insurance has added the responsibility of employers to compensate employees if they do not participate or do not participate in compulsory social insurance fully and promptly, causing damage to the legitimate rights and interests of employees.

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Mr. Nguyen The Manh

Labor expert Pham Minh Huan said that in addition to including in the Draft Law on Social Insurance amendments regulations on handling arrears and evasion of social insurance payments, it is necessary to promote proactive early detection of signs of violations in evasion of social insurance payments in order to have solutions to handle them.

Trade unions and organizations representing employees must strengthen inspection, control, supervision, and detection of enterprises showing signs of committing crimes of evading social insurance payments (according to Article 216 of the Penal Code), and promptly notify competent authorities to conduct proceedings for consideration of prosecution.

"The system of state management agencies must grasp the situation so that there is no more situation of taking advantage of social insurance debt, only when businesses avoid paying then find a way to handle it," Mr. Huan said.