Discovery of businesses using employees' own social insurance contributions to raise capital

Duy Tuấn |

Lam Dong - The Department of Home Affairs determined that many businesses are slow and evade social insurance contributions due to lack of capital, even using money from employees' own social insurance contributions to rotate capital.

On September 9, the Department of Home Affairs of Lam Dong province said that it had updated the assessment report on the implementation of salary and social insurance policies sent to the Ministry of Home Affairs.

According to the report, by June 2026, the whole province had 3,036 labor-using units that were late in paying and evading social insurance, health insurance, and unemployment insurance for 3 months or more, with a total amount of 181.6 billion VND.

In which, the amount of late payment is mainly concentrated in the business sector, with about 167 billion VND.

According to the Department of Home Affairs, some businesses are facing difficulties in production and business, lacking capital sources, so they prioritize using money for immediate expenses. Notably, some businesses also use the 10.5% money that employees self-contribute to social insurance to supplement business capital, instead of having to borrow.

When business operations are not effective, prolonged financial imbalance leads to enterprises delaying payment of social insurance, health insurance, and unemployment insurance.

However, the cause does not only stem from financial difficulties. The Department of Home Affairs said that some businesses have low awareness of law compliance. Many units have been evading contributions for a long time, although they have been inspected and examined many times, they have not yet properly implemented the conclusions of functional agencies.

Some businesses do not cooperate in comparing the salary fund, do not pay debts, avoid or do not sign debt repayment commitments. Some units also do not arrange people to work with the social insurance agency.

This situation directly affects the rights of employees to enjoy social insurance benefits.

Meanwhile, a part of workers have not boldly reflected or denounced acts of late payment or evasion of social insurance due to concerns about affecting jobs. The Department of Home Affairs also believes that the regulations on suing businesses for evasion of social insurance contributions are not really clear about the agency responsible for initiating lawsuits to protect the rights of workers.

The criminal handling of late payment and evasion of social insurance, health insurance, and unemployment insurance, although regulated, still faces difficulties in determining the elements constituting a crime when applied in practice. According to the Department of Home Affairs, this has not created deterrence and spread.

From July 1, 2025 to date, the locality has mediated 18 labor disputes, including cases related to social insurance and unemployment insurance policies. At the same time, in the process of reviewing and synchronizing data, the locality discovered 8 cases of civil servants and public employees borrowing judicial records from others to study, work and pay social insurance.

Among them, there are 3 cases that are temporarily suspending monthly pension payments, and 5 cases that have submitted dossiers requesting pension settlement but have not been resolved.

The Department of Home Affairs said it will continue to strengthen inspection and supervision of the compliance with the law on social insurance, administrative violations, and transfer them to functional agencies for investigation, verification, and handling according to regulations.

Notably, the locality proposed not to consider honoring and rewarding; not to consider participating in bidding and project investment for units that are late in paying or not participating in social insurance as prescribed.

The Department of Home Affairs also proposed to the National Assembly to supplement sanctions of temporary suspension of exit and freezing of bank accounts for employers who evade and owe social insurance for a long time. At the same time, this agency proposed that the Ministry of Home Affairs guide and have sanctions for the act of not paying late social insurance interest.

Duy Tuấn
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