Recommendations for businesses to extend social insurance payment period

The Ministry of Labor, War Invalids and Social Affairs has just sent a dispatch to voters regarding the labor sector. The Ministry said that voters recommended that the Government have a policy to allow businesses to owe and extend the payment period for social insurance, unemployment insurance, and health insurance (allow debt and extend by 3-6 months) so that businesses have capital to maintain production and create jobs for workers.

Regarding this content, the Ministry of Labor, War Invalids and Social Affairs said that according to the provisions of the Law on Social Insurance, employees and employers are responsible for paying social insurance fully and promptly so that employees can enjoy the benefits when eligible.

In order to create conditions to help employers overcome difficulties, stabilize production and business soon and continue to fully implement the social insurance regime for employees, Decree 115/2025 of the Government stipulates that employers facing difficulties who meet the conditions are allowed to temporarily suspend contributions to the pension and death fund for a period of no more than 12 months (without having to calculate late payment interest).

Therefore, it is recommended that employers, based on the above legal provisions, if deemed eligible, prepare a dossier according to the provisions of Article 28 of Circular No. 59/2015 of the Ministry of Labor, Invalids and Social Affairs and send it to the Social Insurance agency for consideration and settlement according to regulations.

Also according to the Ministry of Labor, War Invalids and Social Affairs, the current Law on Employment does not have any regulations on policies for businesses in debt or extending the time to pay unemployment insurance. The regulation of this policy is under the authority of the National Assembly.

The Ministry of Labor, War Invalids and Social Affairs has presided over and coordinated with relevant ministries and branches to prepare a dossier proposing the development of a revised Law on Employment. Regarding the local recommendations, the Ministry of Labor, War Invalids and Social Affairs will study to continue to complete the draft revised Law on Employment, expected to be submitted to the Government in June 2024 for submission to the National Assembly for consideration and first comments at the 8th session in October 2024.

A representative of the Vietnam General Confederation of Labor said that when employees are late or do not pay social insurance, many related benefits are affected. However, most employees do not dare to demand or fight for fear of being fired. Some people pay voluntary social insurance out of their own pocket to continue enjoying social security benefits.

To reduce difficulties for businesses, the Vietnam General Confederation of Labor recently issued a decision that some businesses will be allowed to postpone paying union fees until December 31. These are businesses that have reduced the number of employees participating in social insurance by 50% or more compared to January 1, 2023 (including employees who have stopped working, temporarily suspended labor contracts, and agreed to take unpaid leave) due to the business cutting or reducing orders.