HCMC: 1,500 businesses stop social insurance payments

June 22, 2012 | 16:23

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A high percentage of employees and businesses withdrew from social insurance participation in the first five months of this year, said the director of Ho Chi Minh City Social Insurance Company, Cao Van Sang.

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The number of businesses dissolved or temporarily ceasing to pay social insurance had reached to nearly 1,500 over the last five months, Sang added.

As a matter of fact, 300,000 employees became jobless. The shift in production and business activities has been abrupt and challenging. The violation of social insurance laws has been rampant, Sang said.

So far this year, the Ho Chi Minh City Social Insurance Company received unemployment benefits applications from 45,000 labourers, an increase of 100 per cent over the same period last year. The company has paid unemployment benefits worth of VND178 billion (nearly $8.5 million) for 28,000 employees.

The company has so far sued 97 companies for their total debt of VND40.2 billion ($2 million) and reclaimed VND11 billion ($500,000).

VNS

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