The 2024 Social Insurance Law No. 41/2024/QH15 (Social Insurance Law 2024) and Law No. 51/2024/QH15 amending and supplementing a number of articles of the Law on Health Insurance (amended Health Insurance Law 2024) have adjustments in the direction of more clearly regulating the behavior of late payment, evasion of social insurance, health insurance, unemployment insurance (UI) and strengthening handling measures, especially adding the ability to prosecute criminal liability for evasion of social insurance payment.
Clearly define the behavior of late payment and evasion
The new law tends to clearly define the behavior of late payment and evasion of social insurance and health insurance payment, creating a more solid legal basis for handling.
- Late payment of social insurance and health insurance:
+ Not paying or not fully paying the social insurance and health insurance payable amount from the latest health insurance payment date.
+ Do not make a list or make an incomplete list of people who must participate in social insurance and health insurance for a period of 60 days from the date of expiration of the prescribed period.
- Evading social insurance and health insurance:
+ Employers do not make a list or make an incomplete list of people who must participate in social insurance and health insurance after 60 days from the date of expiration of the prescribed period.
+ Not paying or not paying in full the registered amount of social insurance and health insurance after 60 days from the date of social insurance and health insurance payment no later than the prescribed date and has been urged by the competent authority according to regulations.
Strengthening sanctions
- For late payment of social insurance and health insurance:
+ Compulsory payment of the full amount of late payment.
+ Pay an amount of 0.03%/day calculated on the amount of social insurance, unemployment insurance evasion and the number of days evasion to the social insurance and health insurance fund.
+ Sanction administrative violations according to the provisions of law.
+ No emulation titles or forms of commendation are considered.
- For evasion of social insurance and health insurance payment:
+ Compulsory payment of the full amount of evasion.
+ Pay an amount of 0.03%/day calculated on the amount of social insurance, unemployment insurance evasion and the number of days evasion to the social insurance and health insurance fund.
+ Sanction administrative violations or criminal prosecution according to the provisions of law (this is a notable new point, especially for social insurance).
+ No emulation titles or forms of commendation are considered.
Strengthening discipline, protecting workers' rights and ensuring the sustainability of the social security system
New regulations on late payment and evasion of social insurance and health insurance; sanctions in the revised Social Insurance Law are of great significance, specifically as follows:
Strengthen deterrence and compliance with the law: Clearly defining behavior and strengthening sanctions, especially the ability to prosecute criminal liability for evasion of social insurance and health insurance payments, will create stronger deterrence for violations. This is expected to raise awareness of law compliance of employers.
Protecting the rights of employees: Fully and promptly paying social insurance and health insurance is a key factor to ensure social security and health care benefits for employees. These new regulations contribute to better protecting the legitimate rights of employees, ensuring that they are entitled to social insurance and health insurance regimes when necessary.
Ensuring the sustainability of insurance funds: The behavior of late payment and evasion negatively affects the balance and sustainability of social insurance and health insurance funds. The new regulations, especially strict handling measures, will contribute to stabilizing revenue for funds, ensuring the ability to pay policies to participants.
transparency and fairness: Clearly regulating violations and sanctions will create a more transparent and fair environment for all employers. Units that comply with the law will not suffer any disadvantages compared to units that deliberately violate.
According to Vietnam Social Insurance, the new points in the Social Insurance Law 2024 and the amended Law on Health Insurance 2024 on regulating and handling acts of late payment and evasion of social insurance and health insurance are of great significance in strengthening discipline, protecting the rights of employees and ensuring the sustainability of the social security system.
