Penalties For Administrative Violations Against Regulations On Compulsory Social Insurance In Vietnam

compulsory social insurances

Penalties For Administrative Violations Against Regulations On Compulsory Social Insurance In Vietnam

(Last Updated On: April 15, 2021)

Compulsory social insurances may cost 22% – 34% as an extra amount on the monthly salary and wages budget of the employers.

As the employers, you shall not only fully comply on the local regulations but also need to balance with the practical business situations. Fail to comply means not only typical penalties below but there are beyond lost and risks which you may have to deal with…

VIOLATIONS AGAINST REGULATIONS ON COMPULSORY SOCIAL INSURANCES AND UNEMPLOYMENT INSURANCE

  1. The worker shall be given a warning or liable to a fine of from 500,000 VND to 1,000,000 VND for reaching an agreement with the employer to not participate in compulsory social insurance and unemployment insurance.
  2. The employer shall be liable to a fine of 12% – 15% of the compulsory social insurance and unemployment insurance premium at the time the administrative violation is recorded (not exceeding 75,000,000 VND) when committing one of the following acts:
    • Failing to pay compulsory social insurance premium and unemployment insurance premium on schedule
    • Failing to pay sufficient social insurance premium and unemployment insurance premium;
    • Failing to buy compulsory social insurance and unemployment insurance for all the people that must have social insurance and unemployment insurance.
  3. The employer shall be liable to a fine of 18% – 20% of the compulsory social insurance and unemployment insurance premium at the time the administrative violation is recorded (not exceeding 75,000,000 VND) when failing to buy compulsory social insurance and unemployment insurance for all the workers that must have social insurance and unemployment insurance.

VIOLATIONS AGAINST REGULATIONS ON THE APPLICATION FOR SOCIAL INSURANCES BENEFITS

  1. The worker shall be liable to a fine of from 500,000 VND to 1,000,000 VND for making false declarations or falsifying the information related to the entitlement to benefits of compulsory social insurance, voluntary social insurance, and unemployment insurance.
  2. The employer shall be liable to a fine of from 5,000,000 VND to 10,000,000 when forging the application for social insurance benefits.

VIOLATIONS AGAINST OTHER REGULATIONS ON SOCIAL INSURANCES

The employer shall be liable to a fine of from 300,000 VND to 800,000 when committing one of the following acts

  • Failing to provide documents and information about compulsory social insurances and unemployment insurance at the request of competent authorities.
  • Failing to provide information about payment of compulsory social insurance premium and unemployment insurance premium at the request of workers or the union.

The employer shall be liable to a fine of from 200,000 VND to 500,000 for every worker affected by one of the following acts committed by the employer

  • Failing to give sick pay, maternity pay, subsidies for recovery from sickness or childbirth within 03 working days from the day on which sufficient and valid documents are submitted by the worker.
  • Failing to pay support for accidents, occupational illness within 15 days from the day on which the decision on payment made by the social insurance agency is received.
  • Losing, damaging, falsifying social insurance books.

The employer shall be liable to a fine of from 500,000 VND to 1,000,000 for every worker affected by one of the following acts committed by the employer

  • Failing to make the application for compulsory social insurances, unemployment insurance within 30 days from the day on which the labor contract is signed.
  • Failing to request the social insurance agency in writing to provide a pension 30 days before the worker is qualified for retirement and pension,  provide support for occupational accident or occupational illness within 30 days revenues sufficient and valid documents are submitted by the worker.
  • Failing to have the worker tested for the reduction in workability by the Medical Examination Council for provision of social insurance benefits.

The employer shall be liable to a fine of from 20,000,000 VND to 30,000,000 when improperly using the social insurance fund

 

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