Firms impacted by COVID-19 to be exempted from social insurance

March 17, 2020 | 12:09
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The Ministry of Labour, Invalids and Social Affairs has issued a document allowing businesses which are impacted by the COVID-19 epidemic to suspend payments into the retirement and death gratuity funds of social insurance.
firms impacted by covid 19 to be exempted from social insurance
Firms heavily impacted by COVID-19 will receive some much-needed support in social insurance

The Ministry of Labour-Invalids and Social Affairs has issued a document to guide Vietnam Social Insurance on the conditions for this exemption. Accordingly, the general director of Vietnam Social Insurance asked social insurance divisions in cities and provinces to guide companies where at least 50 per cent of staff members lost their jobs to complete procedures to suspend payments to the retirement and death funds. The postponement will last by the end of June.

This suspended payments will also be exempt from interest.

In case the epidemic is not brought under control by the end of June, impacted companies will be able to apply for an extension of the exemption.

The roadmap for compulsory social insurance payment for foreign employees is clearly outlined by Decree 143. Since the effective date of Decree 143, that is, December 1, 2018, enterprises will pay for two items, including 3 per cent of the salary (for social insurance) to the sickness and maternity fund and 0.5 per cent to the labour accident and occupational disease insurance fund.

From January 1, 2022 onwards, enterprises and foreign employees will pay another 14 and 8 per cent, respectively, to the death gratuity and retirement funds.

Previously, the prime minister ordered tax authorities to reschedule tax payments to support businesses affected by COVID-19.

By Ha Vy

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