Companies in Vietnam still owe social insurance agencies a total of VND11 trillion (USD523.8-million) in overdue payments as of the end of July this year.
Firms in Vietnam still owe total of USD523-million in social insurance
In late July, there were about 62.8 million individuals in Vietnam who bought social insurance, up 2.9 million from the year before.
However, the overdue payments amount to VND11 trillion, or just over 6% of all payments by companies into the fund. The late payments have had an effect on workers, and localities have been asked to increase oversight of businesses, and even to pursue legal actions against those who fail to pay.
The situation has been blamed on a number of reasons, including the economic downturn. However, 50% of the debt is owed by the government.
Also, many companies avoid fulfilling duties to employees, even though employees’ salaries are garnished if they have insurance. Many businesses attempt to make up for the cost of benefits by making their employees work longer hours.
Punishments for violators remain weak and the social insurance agencies do not have a clear legal framework of regulations to conduct effective investigations.
Firms owe total of USD523-million in social insurance Related image(s)
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