[Vietam Legal Update] Procedure Guidance Of Temporary Suspension From Survivorship Payment And Retirement Fund Under Covid-19

May 11, 2020

In order to guide the enterprises in accordance with the 42 NQ-CP about temporary suspension from the payment of survivorship and retirement, the Ministry Of Labour – Invalids And Social Affairs has informed an official letter no. 1511 LDTBXH-BHXB dated 04/5/2020 provided instruction to support the enterprises having difficulties in business and production under Covid-19.

Here below are some keynotes about the guidance:

1. The condition and period of suspension:

Please review back on the official standard No. 860 BHXH-BT or the article here.

2. Obligation of post-payment

- When the period of suspension ends, the employees and employers continue to contribute into the retirement and survivor-ship fund and pay the amount not yet paid under the period of suspension (including a case of ceasing work but still receiving salary as Article 98 of the Labor code 2012); and do not have to pay any interests in this case.

- From 30 days after the period of suspension ended, in a case of the employers do not conduct the duty of post-payment mentioned above, they shall pay an interest equaling 2 times the average interest rate of investment from the social insurance fund in the preceding year, calculated based on the late paid amount and late payment period.

If they fail to do so, at the request of competent persons, related banks, credit institutions, or state treasuries shall deduct money from the employers’ deposit accounts in order to pay the amount not yet paid or paid late and the interest thereon to the accounts of social insurance agencies.

- Within the period of suspension, in a case of the employees satisfy to the conditions of enjoying survivor-ship and retirement regime or terminating labor contract, the employers shall implement the payment duties in order to settle social insurance regimes

3. Application and procedure

a) Requesting application:

- Requesting application as the form in Appendix I of the letter no. 1511/LĐTBXH-BHXH; 

- List of reduced employees as the form in Appendix II of the letter no. 1511/LĐTBXH-BHXH.

b) Procedure:

The employers submit the application to the social insurance organization. Within 5 days after submission, the organization shall process the request completely.

Reference:

* 1511 LDTBXH-BHXB

* 860 BHXH-BT

This is not a legal document. The information here is for reference and general guidance purposes only.

Kindly contact NVM to obtain qualified legal consultation for specific situations

Mr. Huynh Minh Quan | (84) 903 969 118 | quan.huynh@nvmgroup.com

Tags:  COVID-19