Vietnam Social Security awaits go-ahead to remove insurance issues for labourers

Vietnam Social Security is now ensuring social insurance benefits for employees at bankrupt businesses. Photo: Duc Thanh

A representative of Vietnam Social Security (VSS) said it has received a petition from 14 associations and thousands of businesses about the proposal to exempt social insurance premiums during the implementation of social distancing at the request of the government.

The decision of VSS still depends on a number of relevant ministries such as the Ministry of Labour, Invalids and Social Affairs (MoLISA) and the Ministry of Health.

“The government has issued Resolution No.105/NQ-CP on September 10 on supporting businesses, cooperatives, and business households as the pandemic lingers. We are waiting for a reply from the MoLISA on exempting fees and removing difficulties for businesses,” said the VSS representative.

He added that VSS will propose to exempt fines for late payments of social insurance arising in 2020 and 2021, according to regulations, after MoLISA submitted a proposal to the Standing Committee of the National Assembly to reduce premiums enable the short-term use of social insurance funds to timely support labourers and businesses.

Previously, VSS had supported those affected by the pandemic by reducing the contribution rates to zero for insurance funds for occupational accidents and diseases, as well as temporarily suspending contributions to the retirement fund and providing labourers with vocational training from July to June 2022.

VSS has also issued Official Letter No.2802/BHXH-CSXH, which was sent to social security agencies, guiding the implementation of the social insurance regime for employees at bankrupt employers who are owing social insurance premiums.

As of September 10, VSS has received and processed applications from 516 units with over 94,000 employees to temporarily suspend contributions to the retirement fund, estimated at around $27.5 million.

Over 984,000 employees of more than 33,000 employers across the country have been reviewed by the VSS for their eligibility for support policies. Of these, almost 750,000 employees of over 30,000 businesses had to take unpaid leave or had their work contracts suspended due to the pandemic.

Meanwhile, only about 125,000 employees received a support of $43. A little more than 1,100 employees have been trained to maintain jobs. More than 650 firms have received loans to pay salaries for employees and 190 units have been offered loans to restore production.

In transport, tourism, and accommodation, about 155 units with a total of more than 21,000 employees were also offered loans to recover operations.

It is difficult to accurately estimate the number of workers who have had to temporarily stop working or lost their jobs due to the pandemic, but among them, employees with social insurance received support from VSS so that they can soon stabilise their lives.

The representative of VSS said the organisation is ensuring social insurance benefits for employees at bankrupt businesses.