ENTERPRISES LAYING OFF MORE THAN 50% OF EMPLOYEES MAY SUSPEND SOCIAL INSURANCE CONTRIBUTIONS

According to Official Dispatch No. 860/BHXH-BT issued by Vietnam Social Security and coming into effect from March 17, 2020:

Accordingly, social security authorities will review enterprises which operate in passenger transport, hospitality, food and drink, and other business lines affected by the pandemic and have to lay off more than 50% of the total number of employees who have compulsory social insurance or lose more than 50% of total assets (excluding land) to suspend their mandatory social insurance contributions.

Local social security authorities promptly process applications for interest-free suspension of contributions to the pension fund and death benefit fund until the end of June 2020 upon receiving such applications from enterprises.

According to Official Dispatch No. 553/BHXH-QLT issued by Ho Chi Minh City Social Security and coming into effect from March 23, 2020:

– Accordingly, HCMC Social Security instructs the applications and procedures for suspending contributions as follows:

(i) Enterprises contact Labor, War Invalids and Social Affairs authorities to confirm the number of social security-protected employees temporarily laid off in comparison to the total number of employees present before the temporary suspension of production and business activities takes place, or contact finance authorities to confirm losses compared to the value of assets specified in the latest property inventory reports made before the time of incurrence of such losses in accordance with:

• Clause 1 Article 88 of the 2014 Law on Social Security;
• Clauses 1, 2, 3 and 4 Article 16 of Decree No. 115/2015/ND-CP dated November 11, 2015;
• Article 28 of Circular No. 59/2015/TT-BLDTBXH dated December 29, 2015.

(ii) Enterprises prepare and submit documents to social security agencies using delivery note No. 600a, with a written confirmation of eligibility for suspension of contributions to the Pension and Death Benefit Funds by a competent authority for processing.

• On the suspension period: Eligible enterprises enjoy suspension of contributions to the death benefit fund until the end of June 2020.
• At the end of June 2020, in case the Covid-19 epidemic does not subside, if the enterprise requests, HCMC Social Security will continue to suspend contributions to the pension fund and death benefit fund until December 2020.

Best regards,