Frustration with businesses delaying and evading social insurance payments

Tens of billions of dong in debt and affecting thousands of workers

By the end of August, Hai Duong province still had 217 enterprises that were 3 months or more behind in paying social insurance for 2,089 employees with a total amount of nearly 22 billion VND.

The whole province also has about 41 billion VND in social insurance debt that is difficult to collect. This is the debt of businesses that have stopped operating, dissolved, employers who have absconded or intentionally evaded payment...

The company with the highest social insurance debt and more than 3 months late payment is Bac Hung Hai Irrigation Works Exploitation One Member Co., Ltd. This company owes nearly 2.6 billion VND in social insurance for 166 workers for more than 6 months. Next is Vi Son Fiber Co., Ltd., which owes nearly 2.1 billion VND to 19 workers for nearly 2 years.

Regarding the delay and avoidance of paying social insurance, Yen Thanh Company Limited Branch in Hai Duong (in Thanh Quang Commune, Nam Sach District) owed 11 employees for 44 months (nearly 4 years) with a total amount of nearly 759 million VND. According to Nam Sach District Social Insurance, this company has been late in paying for many years, the insurance agency could not contact them, and even when going directly to the company, they could not meet the owner of the company.

This is also the situation in some enterprises that owe social insurance payments in the province. When inspected and administrative penalties are issued, some enterprises do not comply.

When Hai Duong Newspaper reporters contacted Ms. Bui Thi Hai Yen, representative of Yen Thanh Company Limited branch in Hai Duong, by phone, Ms. Yen said that the business was transferred from another person with many debts from before. Production is unstable so there is no funding to cover. From now until the end of the year, the business will try to pay part of the social insurance debt for employees.

Some businesses are no longer operating but do not complete the procedures to stop operations, so the insurance agency has no basis to freeze debt or stop calculating late payment interest for processing. Some businesses have their headquarters in one place but their owners in another, so it is difficult for the social insurance agency to contact them to "collect debt".

Last August, the National Assembly Delegation of Hai Duong province supervised the Social Insurance of Hai Duong province and several districts and received reports of businesses being slow to pay or evading social insurance.

The amended law has strong sanctions.

Enterprises that delay paying social insurance cause disadvantages to employees. Because Vinaincom Centrifugal Concrete Joint Stock Company owes social insurance, a female employee here gave birth nearly 2 years ago but still has not received maternity benefits of about 30 million VND.

The Director of the Hai Duong Provincial Social Insurance Department decided to fine the Yen Thanh Company Limited branch nearly 75.5 million VND from October 14, 2022 for late payment of mandatory social insurance for employees. The Hai Duong Provincial Social Insurance Inspection Agency said that as of September 27, 2024, this enterprise had not yet paid the fine. When enforcing the payment through the account, the bank said that the enterprise's account had no money. The case file has been transferred to the police agency to coordinate and urge the unit to strictly implement the policies and laws on social insurance and health insurance.

The 7th session of the 15th National Assembly passed the Law on Social Insurance (amended) with specific provisions on measures to handle acts of late payment and evasion of social insurance. In particular, it is mandatory to pay the full amount of late payment and evasion of social insurance and pay an amount equal to 0.03%/day calculated on the amount and number of days of late payment and evasion; administrative sanctions are imposed according to regulations; emulation titles and forms of commendation are not considered. In particular, acts of evasion of payment will be subject to strong measures such as criminal prosecution. When taking effect from July 1, 2025, this law is expected to prevent businesses from evading social insurance payments.

According to Mr. Nguyen Quang Huy, Head of the Collection Management Department - books and cards (Social Insurance of Hai Duong province), to solve the situation of enterprises being slow in paying or evading social insurance, it is also necessary to have the participation and close coordination of departments, branches and localities in managing and closely monitoring the activities of enterprises and changes in the awareness of workers in Hai Duong.