Official Dispatch No. 1511/LDTBXH-BHXH dated May 04, 2020 of the Ministry of Labor, War Invalids and Social Affairs on providing guidance on the suspension of contribution to the retirement and survivorship allowance fund

To:

- People’s Committees of provinces and centrally run cities;

- The Vietnam Social Security.

In the implementation of the Government’s Resolution No. 42/NQ-CP dated April 09, 2020 on measures to support people affected by the COVID-19 epidemic, the Prime Minister’s Directive No. 11/CT-TTg dated March 04, 2020 on urgent tasks and solutions to remove difficulties for production and business, ensure social security in response to the Covid-19 epidemic; pursuant to the 2014 Law on Social Insurance, the Government’s Decree No. 115/2015/ND-CP dated November 11, 2015 on detailing a number of articles of the Law on Social Insurance regarding compulsory social insurance and the Circular No. 59/2015/TT-BLDTBXH dated December 29, 2015 of the Ministry of Labor, War Invalids and Social Affairs on detailing and guiding a number of articles of the Law on Social Insurance regarding compulsory social insurance; continuing the Official Dispatch No. 797/LDTBXH-BHXH dated March 09, 2020 of the Ministry of Labor, War Invalids and Social Affairs on providing specific guidance on the suspension of contribution to the retirement and survivorship allowance fund as follows:

1. Cases of suspension of contribution to the retirement and survivorship allowance fund

An employer may suspend his/her contribution to the retirement and survivorship allowance fund if falling into any of the following cases:

a) Suspension of production and business activities for 01 month or more due to difficulties in changing structure or technology, or due to economic crisis or recession or implementation of State policies upon economic restructuring or implementing international commitments;

b) Difficulties caused by natural disasters, epidemics, bad harvest.

2. Conditions for suspension of contribution to the retirement and survivorship allowance fund

An employer who falls into any of the above cases may suspend his/her contribution to the retirement and survivorship allowance fund if satisfying any of the following conditions:

a) Unable to arrange jobs for employees, in which the number of employees who participate in social insurance must temporarily take leave is at least 50% of the total number of employees present before suspending production and business activities;

b) Suffering the loss of more than 50% of total asset value due to natural disasters, epidemics, bad harvest (excluding land);

c) Having fully paid social insurance until the end of January 2020 and having to reduce 50% of employees participating social insurance or more at the time of having a written request in comparison to January 2020 due to the COVID-19 epidemic. The number of employees participating social insurance to be suspended from work or laid-off including:

- The number of employees who have their labor or working contracts terminated as prescribed by law minus the number of new employees entering into labor or working contracts from February 01, 2020 to the date on which the employers have the written request.

- The number of employees who have their labor contracts suspended and the suspension period is 14 working days in a month or more;

- The number of employees who take unpaid leave, provided that the unpaid leave period is 14 working days in a month or more;

- The number of employees who are suspending work, provided that the suspension period is 14 working days in a month or more.

The number of employees mentioned in this Point shall only include those who work under indefinite-term labor contracts, definite-term labor contracts, and contracts with a term of between full 01 month and under 12 months; enterprise managers or cooperative managers entitled to salaries.

3. The duration for suspension of contribution to the retirement and survivorship allowance fund

a) For the cases specified at Points a and b, Clause 2 of this Official Dispatch, the duration for suspension of contribution to the retirement and survivorship allowance fund shall be 12 months maximum, starting from the month the employer has the written request;

For the cases specified at Point c, Clause 2 of this Official Dispatch, the duration for suspension of contribution to the retirement and survivorship allowance fund shall be 12 months maximum, staring from the month the employer has the written request, but not exceed the time limit prescribed at Point d, Clause 1, Section II of the Prime Minister’s Directive No. 11/CT-TTg dated March 04, 2020 on urgent tasks and solutions to remove difficulties for production and business, ensure social security in response to the Covid-19 epidemic.

c) The social insurance agency shall consider and decide the duration for suspension of contribution to the retirement and survivorship allowance fund on a basis of the written request and dossier sent by the employer.

4. Compensation to the retirement and survivorship allowance fund

a) Past the time for suspension of contribution to the retirement and survivorship allowance fund specified in Clause 3 of this Official Dispatch, the employers and employees shall continue to make contribution to the retirement and survivorship allowance fund and make compensation payment for the suspension period (for both employees who suspend work with pay under Article 98 of the Labor Code), late-payment interests as prescribed in Clause 3, Article 122 of the Law on Social Insurance shall not be charged on the compensation amount.

After the time limit for suspension of contribution to the retirement and survivorship allowance fund, if the employer fails to make compensation payment for the suspension period, regulations of Clause 3, Article 122 of the Law on Social Insurance shall be applied.

b) During the period of suspension of contribution to the retirement and survivorship allowance fund, if the employee satisfies conditions to be entitled to retirement and survivorship allowance regimes or has his/her labor contract terminated, the employer shall make the compensation payment for such suspension period to settle the employee s benefit.

5. Implementation organization

a) Competence, order and procedures for determining the number of employees participating social insurance and suspending work, the damaged asset value for the cases mentioned at Points a and b, Clause 2 of this Official Dispatch shall comply with Article 28 of the Circular No. 59/2015/TT-BLDTBXH dated December 29, 2015 of the Ministry of Labor, War Invalids and Social Affairs on detailing and guiding a number of articles of the Law on Social Insurance regarding compulsory social insurance.

b) Dossier and implementation procedures for the cases mentioned at Point c, Clause 2 of this Official Dispatch are prescribed as follows:

- Dossier of request:

+ A written request made by the employer according to the form provided in Appendix I attached to this Official Dispatch;

+ A List of employees to be suspended from work or laid-off made according to the form provided in Appendix II attached to this Official Dispatch;

+ Copies of agreements or decisions on work suspension or layoff of employees as prescribed at Point c, Clause 2 of this Official Dispatch.

- Implementation procedures:

+ The employer shall submit a dossier to the social insurance agency where he/she is making social insurance contribution;

+ Within 05 working days from the date on which the employer’s dossier of request is received, the social insurance agency shall be responsible for check the dossier, collate with the number of employees participating social insurance under it management to consider and settle for suspension of contribution to retirement and survivorship allowance fund. In case of refusing to settle, there must be a written reply which clearly states the reason.

c) The social insurance agency shall be responsible for monitoring and reckoning the settlement of suspension of contribution to the retirement and survivorship allowance fund for the cases prescribed at Point c, Clause 2 of this Official Dispatch according to Appendix III attached to this Official Dispatch.

Every 03 working days and before the 20^thevery month, the Vietnam Social Security shall send the report on settlement of suspension of contribution to the retirement and survivorship allowance fund for the cases prescribed at Point c, Clause 2 of this Official Dispatch to the Ministry of Labor, War Invalids and Social Affairs for timely summarizing and reporting the Government and the Prime Minister./.

* All Appendices are not translated herein.