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Enterprises who ignore to pay social insurance for their employees will face a fine of up to US$1,530. — VNA/VNS Photo Anh Tuan |
Government Decree 86/2010/ND-CP, which sets the penalty, to become effective on October 1, also requires the payment of all outstanding social insurance.
The decree will also have individuals and businesses that fail to keep compulsory social-insurance and unemployment-insurance records within 30 days of the signing of labour contracts fined between VND300,000-700,000 ($15.7-36.8).
And businesses will be fined up to VND500,000 ($26.3) if they dawdle in making insurance-company-approved social-insurance payments to their employees.
But Labour, Invalids and Social Affairs Ministry Social Insurance department director Tran Thi Thuy Nga complains the fines are not heavy enough to deter delinquent employers.
Employers avoided making the insurance payments because they were indifferent to the sanctions, she said.
"The lack of awareness among workers also encourages businesses to avoid social-insurance payments."
Thousands in debt
The Ha Noi Social Insurance Department reports that more than 11,400 of the city's businesses owed about VND455 billion ($23.6 million) in social insurance premiums last year.
The figure had risen to VND768 billion ($39.3 million) for social and health insurance premiums as of June 30.
Director Nga said regular inspections were needed to identify offending enterprises and workers provided with more information to help them defend themselves.
The new decree will have workers who fake documents to receive social insurance benefits fined up to VND5 million ($255) and the implements used for the forgery seized. Workers who agree with their employees not buy compulsory social insurance will be fined up to VND300,000 ($15.7).
Social insurance organisations and agencies which violate the regulations for the management and use of money for compulsory and volunteer social and unemployment insurance will be fined up to VND15 million ($765).
The decree was signed last Monday. — VNS
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