HCMC – Around 1,000 enterprises employing more than 42,000 laborers in HCMC owed social insurance premiums totaling over VND1.6 trillion last year, up nearly 1.5% year-on-year, according to Vietnam Social Security (VSS).
By the end of last year, these businesses had delayed social insurance payments – also known as the payroll tax – for at least six months. Aside from businesses and units owing social insurance premiums for a long time and not being able to pay off their debts, some major firms also delayed social insurance payments, Phan Van Men, director of VSS, said yesterday, January 25.
According to the VSS leader, the delay was attributed to the Covid-19 pandemic that put many firms in difficulties, including forcing them to downsize their businesses or suspend operations. Under the direction of the Government, VSS’ inspection into businesses that delayed social insurance payments had to be halted. Accordingly, the social insurance authorities could not handle these cases in time, leading to rising debts.
Besides, as the competent forces had yet to issue specific guidelines to handle businesses that went bankrupt, were dissolved, suspended operations or whose owners fled, the collection of social insurance debts also faced obstacles. Further, a number of units intentionally did not pay off their social insurance debts despite being inspected multiple times.
To ensure benefits in terms of sickness, maternity and retirement for employees at firms that owed social insurance fees, VSS allowed these firms to pay social insurance premiums for these employees first.
In the upcoming period, VSS vowed to ramp up inspections at enterprises with social insurance debts.
The social insurance authority of HCMC also requested the city’s police department to handle some units that owed or evaded social insurance payments for a long time that affected many laborers.
According to a report of the HCMC social insurance authority, over 93,000 enterprises with over 2.2 million laborers had participated in social insurance by the end of 2021. Last year, the authority recorded that some 200,000 laborers quit their jobs and stopped social insurance payments.