In order to support people facing difficulties due to the impact of the Covid -19 pandemic, the State has issued many urgent measures to limit difficulties for production and business activities, ensuring social security and quality life. Accordingly, for businesses heavily affected by the Covid epidemic – 19, the Ministry of Labor – Invalids and Social Affairs issued Official Dispatch No. 1511 / LDTBXH-BHXH 2020 on guiding the temporary suspension of payment to the fund retirement and survivors on May 4, 2020.
In the Official Dispatch, it is clearly stated that, in case the Employer has to suspend production and business for 01 month or more due to difficulty in changing structure, technology or due to crisis, economic recession or to implement State policies when restructuring the economy or fulfilling international commitments; Employers who are in difficulties due to natural disasters, fires, epidemics or crop failures will be temporarily suspended to contribute to the retirement and survivorship fund.
However, the employer in the above cases may only temporarily suspend the payment to the retirement and survivorship fund when satisfying one of the following conditions:
The quantity of suspended employees who have social insurance is at least 50% of total number of employees before the suspension.
The loss caused by the natural disaster, fire, epidemic or crop failure is over 50% of total assets (excluding land);
Accordingly, the period of temporary suspension of payment to the retirement and survivorship fund for the two above cases is counted from the month the employer issues a written request but not more than 12 months.
Social insurance premiums have been fully paid by the end of January 2020 and the quantity of employees who have social insurance is decreased by at least 50% over the period from January 2020 to the date of application. The employees only includes those who have indefinite-term employment contracts, fixed-term employment contracts, employment contracts with a term of from 1 to less than 12 months; hired managers of enterprises and cooperatives. In this case, the period of temporary suspension of payment to the retirement and survivorship fund is calculated from the month the employer issues a written request and does not exceed the time limit of June or December 2020.
At the end of the suspension period, the employer and the employee continue to contribute to the retirement and survivorship fund and at the same time make compensation for the suspension period (for both employees stopped paying wages), The amount of compensation payment is not subject to late payment interest. If, during this period, the employee is eligible for retirement, survivorship or termination of the labor contract, the employer shall make payment to compensate for the suspension period. regime for employees. The provisions of this Official Letter will officially take effect from May 4, 2020.